Institutional Investment in Crypto Products Surges as Ethereum Emerges Strongest Amid Market Correction
Institutional investors injected significant capital into digital asset investment products last week, according to CoinShares, a digital assets manager. In its most recent report on Digital Asset Fund Flows, CoinShares revealed that institutional crypto investment products experienced inflows of $176 million last week as investors seized the opportunity presented by price declines.
The report stated, “Digital asset investment products attracted inflows totaling US$176m as investors perceived recent price weakness as a chance to buy. Total Assets under Management (AuM) of investment products had dropped to US$75bn, shedding over US$20bn during the correction, but have since rebounded to US$85bn. Trading activity in ETPs surged to US$19bn for the week, surpassing the average weekly volume of US$14bn witnessed so far this year.”
CoinShares noted that the response to these developments was overwhelmingly positive across regions, especially in the US, Switzerland, Brazil, and Canada, which saw inflows of US$89m, US$20m, US$19m, and US$12.6m, respectively. The US stood out as the only country experiencing net outflows month-to-date, totaling US$306m.
Ethereum (ETH) institutional investment products attracted the most inflows among crypto assets, totaling $155 million last week. This brought its year-to-date inflows to US$862m, the highest since 2021, primarily driven by the recent introduction of US spot-based ETFs (exchange-traded funds).
Bitcoin (BTC) saw inflows of $13 million, while multi-asset investment vehicles and Solana (SOL) attracted $18.3 million and $4.5 million, respectively.
It is evident that institutional interest in digital assets remains robust, with significant capital inflows into various crypto investment products. The positive response from investors to recent price fluctuations underscores the growing acceptance and adoption of digital assets within the institutional investment landscape.
