Ethereum Sees Significant Inflows Amid Market Downturn
Ethereum has emerged as the primary beneficiary of the recent market downturn, with investors perceiving the price decline as a prime buying opportunity. Recent data indicates that Ethereum attracted $155 million in inflows over the past week. According to CoinShares, this latest influx has raised its total year-to-date inflows to $862 million, marking the highest level since 2021, largely driven by the recent introduction of spot-based ETFs in the United States.
Inflows Rebound
Alongside Ethereum, other cryptocurrencies have also experienced a positive sentiment. Bitcoin, for instance, saw a substantial increase in inflows towards the end of the week, recovering from initial outflows at the beginning. This brought Bitcoin’s weekly inflow total to $13 million.
Conversely, short Bitcoin exchange-traded products (ETPs) faced their largest outflows since May 2023, totaling $16 million, which accounts for 23% of their assets under management (AuM). This decline has brought their AuM for short positions to the lowest level of the year, signaling a significant exit by investors.
The latest Digital Asset Fund Flows Weekly Report from CoinShares highlighted that the positive trend also applied to investment products linked to Solana, XRP, and Cardano, which received weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively.
Overall Market Recovery
When looking at the broader picture, digital asset investment products collectively saw inflows of $176 million as investors viewed the recent price drops as a buying opportunity. Although the Total Assets under Management (AuM) for these products had fallen to $75 billion—losing over $20 billion during the market correction—it has rebounded to $85 billion, according to CoinShares’ estimates.
In terms of trading activity, the volume in Exchange-Traded Products (ETPs) surged to $19 billion for the week, exceeding the weekly average of $14 billion observed this year.
Global Optimism on the Rise
CoinShares also reported an unusual trend, with inflows coming from every region last week, reflecting a collective optimism towards digital assets following the recent price corrections. The most significant inflows originated from the United States, Switzerland, Brazil, and Canada, amounting to $89 million, $21.3 million, $20 million, and $19.2 million, respectively.
Furthermore, Germany, Australia, and Sweden recorded weekly inflows of $12.6 million, $5.9 million, and $5.1 million, respectively. Despite the positive trends in other regions, the United States has experienced net outflows for the month, totaling $306 million.
