Significant Inflows in Crypto Investment Products
According to the latest weekly report from CoinShares, crypto investment products have seen substantial inflows totaling $176 million as investors took advantage of recent price dips. James Butterfill, the head of research at CoinShares, highlighted that although total assets under management (AUM) for crypto exchange-traded products (ETPs) fell to $75 billion during the market correction, they have since rebounded to $85 billion in the latest report.
Surge in Trading Volume
During this period, the trading volume for ETPs surged to $19 billion, surpassing the average weekly trading volume of $14 billion recorded this year.
Ethereum’s Dominance
Ethereum emerged as the biggest beneficiary from the market correction, attracting $155 million in inflows last week. This brings its year-to-date inflows to $862 million, marking the highest level since 2021, largely due to the recent launch of US spot-based ETFs. Market experts have commended the performance of Ethereum ETFs since their introduction in July. Nate Geraci, president of ETF Store, noted that BlackRock’s iShares Ethereum ETF has quickly become one of the top six ETF launches of 2024.
Bitcoin’s Mixed Performance
Geraci remarked, “The iShares Ethereum ETF has attracted over $900 million in less than three weeks and is likely to hit $1 billion this week.” In contrast, Bitcoin experienced mixed results last week. The leading digital asset began the week with outflows but saw a turnaround towards the end, with investors adding $13 million to Bitcoin-related investment products.
Outflows in Short Bitcoin ETPs
Conversely, short Bitcoin ETPs experienced their largest outflows since May 2023, totaling $16 million, which accounts for 23% of its AUM. This decrease reflects a significant withdrawal by investors from short positions. Other digital assets such as Solana, XRP, Cardano, and Litecoin also recorded modest inflows of approximately $6 million last week.
Global Inflows and Sentiment
Inflows were noted across all regions, indicating a widespread positive sentiment towards the asset class following the recent price correction. The United States led with $89 million in inflows, followed by Switzerland with $20 million, Brazil with $19 million, and Canada with $12.6 million. However, the US remains unique in experiencing net outflows month-to-date, totaling $306 million.
