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Ethereum Leads Market Recovery with $155M Inflows Amid Recent Downturn

Summary:
Ethereum has seen the greatest advantage from the recent market downturn as investors appeared to have viewed the price weakness as a buying opportunity. In fact, data suggests that Ethereum has managed to attract 5 million in inflows over the past week. According to CoinShares, the latest round of inflows boosted its year-to-date total inflows to 2 million, the highest since 2021, primarily fueled by the recent introduction of US spot-based ETFs. Inflows Rebound Besides Ethereum, the positive sentiment is evident for other crypto assets as well. Bitcoin, for one, saw a significant increase in inflows toward the end despite initial outflows at the start of the week, bringing the weekly total to million. On the other hand, short Bitcoin ETPs recorded their largest

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Ethereum has seen the greatest advantage from the recent market downturn as investors appeared to have viewed the price weakness as a buying opportunity.

In fact, data suggests that Ethereum has managed to attract $155 million in inflows over the past week. According to CoinShares, the latest round of inflows boosted its year-to-date total inflows to $862 million, the highest since 2021, primarily fueled by the recent introduction of US spot-based ETFs.

Inflows Rebound

Besides Ethereum, the positive sentiment is evident for other crypto assets as well. Bitcoin, for one, saw a significant increase in inflows toward the end despite initial outflows at the start of the week, bringing the weekly total to $13 million.

On the other hand, short Bitcoin ETPs recorded their largest outflows since May 2023, totaling $16 million (23% of AuM), which has dropped their AuM for short positions to the year’s lowest level, indicating a major investor exit.

CoinShares’ Digital Asset Fund Flows Weekly Report disclosed that the positive trend also extended to investment products related to Solana, XRP, and Cardano, which received weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively.

Zooming out, digital asset investment products collectively experienced $176 million in inflows as investors perceived recent price declines as a chance to buy. Although the Total Assets under Management (AuM) for these products had dropped to $75 billion – losing more than $20 billion during the market correction – it has since rebounded to $85 billion as per CoinShares’ estimates.

Meanwhile, trading volume in Exchange-Traded Products (ETPs) surged to $19 billion for the week, surpassing the $14 billion weekly average seen this year.

Global Optimism Boosts

CoinShares also revealed an unusual trend of inflows from every region last week. This indicated a collective optimism towards the asset class following the recent price dip. The most significant inflows came from the US, Switzerland, Brazil, and Canada, totaling $89 million, $21.3 million, $20 million, and $19.2 million, respectively.

Additionally, Germany, Australia, and Sweden saw $12.6 million, $5.9 million, and $5.1 million, respectively, in weekly inflows. Despite this, the US remains the sole country with net outflows for the month with $306 million.

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