Recent data from CoinShares reveals that Ethereum (ETH) experienced a surge in inflows last week, outpacing Solana’s (SOL) inflows for the year 2024. This increase in investment coincided with the upcoming launch of exchange-traded funds (ETFs) that will enable regulated investment in the US for the second-largest cryptocurrency by market capitalization. Ethereum recorded inflows of $45 million last week, bringing the total for the year to over $103 million, surpassing Solana’s year-to-date (YTD) inflows. On the other hand, Solana received inflows of $9.6 million during the same period, resulting in a YTD total of $71 million, which is lower than Ethereum’s inflows.
Among other altcoins, Litecoin was the only one to receive inflows exceeding $1 million, with $2.2 million recorded last week. The report also highlights that general digital asset investment products saw continuous buying, with inflows reaching $1.35 billion last week. This trend has led to a three-week inflow streak totaling $3.2 billion, contributing to the recent recovery in crypto prices. Additionally, trading volumes of exchange-traded funds increased by 45% week-on-week to $12.9 billion, although this represented only 22% of the broader crypto market volumes.
Bitcoin (BTC) saw inflows of $1.27 million last week, while short-bitcoin ETPs experienced outflows of $1.9 million. Notably, these outflows have amounted to $44 million since March, representing 56% of the assets under management (AuM). The Securities and Exchange Commission (SEC) is expected to fully approve spot Ethereum ETFs, opening the door for a second cryptocurrency investment option in the US that could attract significant funds from retail and institutional investors.
Industry experts anticipate that the approval of Ethereum ETFs will have a substantial impact on the Ethereum blockchain and its decentralized finance (DeFi) protocol. James Seyffart, a Bloomberg ETF expert, expects the ETFs to start trading soon, following the approval by the SEC. Mark Connors, the head of global macro strategy at Onramp, expressed that Ethereum’s success in the ETF launch will reflect its ability to maintain market relevance and attract sustained interest, leading to increased adoption and inflows that could influence its price in the future. He referred to Ethereum as the “middle kid protocol,” emphasizing the significance of the upcoming ETF launch for the DeFi ecosystem.
The recent surge in Ethereum inflows, coupled with the impending approval of Ethereum ETFs, signifies a growing interest in the cryptocurrency market. As investors eagerly await the launch of these investment vehicles, all eyes are on Ethereum to demonstrate its resilience and potential for sustained growth in the evolving digital asset landscape.
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