Ethereum Drives Crypto Market with $176 Million Inflows
Digital asset investment products saw significant net inflows of $176 million in the latest report by CoinShares, with investors capitalizing on recent price declines to bolster their holdings.
Ethereum emerged as a frontrunner in this trend, attracting impressive inflows of $155 million, pushing its year-to-date total to $862 million—the highest level seen since 2021. On the other hand, Bitcoin experienced more modest inflows of $13 million, while short Bitcoin ETPs faced outflows of $16 million, indicating a shift in investor sentiment towards more positive long positions.
Bitcoin spot ETFs, however, encountered a net outflow of $169 million during the week of August 5 to August 9. Notably, Grayscale’s GBTC witnessed a substantial outflow of $392 million, while BlackRock’s IBIT ETF and WisdomTree’s BTCW ETF managed to attract inflows of $220 million and $129 million, respectively. This divergence suggests a scenario where some investors are retracting from traditional Bitcoin products, while others are displaying growing confidence in new offerings from major financial institutions like BlackRock.
In a separate development, the Bitcoin network hashrate achieved a fresh all-time high, reaching 627 exahashes per second (EH/s). This milestone marks a robust recovery from a recent 8.5% downturn, underscoring the network’s enhanced security and computational capabilities. Despite this surge in hashrate, Miner Reserves have plummeted to their lowest levels on record.
The total amount of Bitcoin held by miners now stands lower than during Bitcoin’s peak in the first quarter of 2021, hinting at a potential scenario where miners are offloading their holdings amidst price fluctuations.
These contrasting signals—from escalating inflows in digital asset products to record-breaking hashrates—present a nuanced depiction of the present crypto market, where a blend of optimism for future gains and caution among significant players like miners and ETF investors prevails.
It is vital to note that this article does not offer trading or investment advice. Conduct thorough research before engaging in any cryptocurrency purchases or investment activities.
