The latest data from crypto asset manager CoinShares indicates a significant rebound in the crypto market. According to the ‘digital asset fund flows weekly report,’ digital asset investment products experienced $176 million in inflows last week. This surge in investor confidence, as noted by James Butterfill, head of research at CoinShares, suggests a strong and unanimous positive sentiment across various digital assets, particularly Ethereum.
Delving into the report, Butterfill highlighted that Ethereum products have notably stood out, attracting $155 million of the total inflows. This represents the highest year-to-date intake for Ethereum since 2021. The market’s renewed interest in Ethereum can be attributed to the recent introduction of spot Ethereum exchange-traded funds (ETFs) in the United States. Live trading of these funds has not only bolstered Ethereum’s position in the global crypto market but also contributed to an increase in its market cap and investment product offerings.
Despite experiencing outflows earlier in the week, Bitcoin is expected to end the week with a positive total inflow of approximately $13 million. On the other hand, Short Bitcoin ETPs saw their largest outflows since May 2023, leading to a substantial investor exit and reducing AuM for short positions to its lowest level since the start of the year.
CoinShares reports that despite initial volatility, the overall market sentiment has been overwhelmingly positive. The inflows observed are not isolated incidents but part of a broader global positive reception to digital assets. Countries like the United States, Switzerland, Brazil, and Canada have been actively investing in the market, demonstrating a collective bullish outlook.
Both Bitcoin and Ethereum are facing challenges in overcoming market bearishness. However, they are still trading above key price levels. Ethereum is currently trading above $2,500, with a current price of $2,689. The asset has seen an increase of over 11% in the past week, along with a 1.6% surge in the past day. Bitcoin has also experienced a surge of 11.4% in the past week and is maintaining a price below $60,000, despite a 0.4% decline in the past day.
The recent comeback in the crypto market, as highlighted by CoinShares’ data, points to a resurgence in investor confidence and a positive market sentiment towards digital assets. The focus on Ethereum and the introduction of new investment products have played a significant role in driving this resurgence. While challenges remain, the overall outlook for the crypto market appears to be bullish, with both Bitcoin and Ethereum showing resilience in the face of market fluctuations.
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