Bitcoin Inflows Soar by $436 Million While Ethereum Funds Experience Outflows
Bitcoin saw a significant increase in inflows totaling $436 million last week, while Ethereum experienced outflows of $19 million during the same period, according to data from CoinShares, an asset management firm. The overall inflows into digital asset investment products rebounded to $436 million after a period of outflows amounting to $1.2 billion.
In contrast, funds with short positions in Bitcoin witnessed a capital outflow of $8.5 million following three consecutive weeks of inflows. This positive trend in Bitcoin-related products marked the end of a 10-day streak of outflows totaling nearly $1.2 billion.
Ethereum faced challenges due to concerns surrounding the profitability of its mainnet following the Decun upgrade on March 13, which significantly reduced transaction costs for layer-2 blockchains built on the Ethereum network. Data from growthepie indicated a substantial drop of up to 99.6% in fees paid by L2 to store data on Ethereum in 2024. Additionally, information from Token Terminal revealed that Ethereum’s weekly revenue hit its lowest level year-to-date since August 12, averaging $4.56 million.
Despite Ethereum’s difficulties, Solana experienced inflows for the fourth consecutive week, totaling $3.8 million, while multiasset-based funds also saw inflows of $22.8 million. The report highlighted an increase in appetite for crypto-related investment products towards the end of the week.
In terms of regional inflows, the United States led with $416 million, followed by Switzerland with $27 million. Switzerland, holding the second-largest year-to-date inflows nearing $400 million, showcased positive growth. Germany also recorded positive flows of $10.6 million last week, although its net flows for 2024 remained negative at $319 million.
Canada and Sweden experienced minor outflows of $18 million and $4.6 million, respectively. Blockchain equities witnessed inflows of $105 million following the seeding and launch of several new ETFs in the US. Despite this, trading volumes in ETFs remained flat at $8 billion for the week, significantly lower than the average of $14.2 billion seen throughout the year.
The overall market sentiment for crypto-related investment products improved by the end of the week, potentially influenced by market expectations of a 50 basis point interest rate cut on September 18, following statements from former New York Fed President Bill Dudley.
