Ethereum has emerged as the frontrunner in the recent market downturn, with investors seizing the opportunity presented by the price weakness. Data reveals that Ethereum has attracted a staggering $155 million in inflows over the past week alone. This surge has propelled its year-to-date total inflows to $862 million, marking the highest influx since 2021. The introduction of US spot-based ETFs has played a significant role in driving this positive trend for Ethereum.
While Ethereum has stolen the spotlight, Bitcoin has also witnessed a notable increase in inflows towards the end of the week, following initial outflows at the beginning. The weekly total for Bitcoin inflows stands at $13 million. Interestingly, short Bitcoin ETPs have experienced their largest outflows since May 2023, amounting to $16 million (23% of AuM). This trend has led to a significant decline in the AuM for short positions, signaling a mass exodus of investors.
The positive sentiment isn’t limited to Ethereum and Bitcoin alone. Investment products linked to Solana, XRP, and Cardano have also seen weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively. This collective influx of $176 million in digital asset investment products reflects investors’ collective perspective on recent price declines as an opportunity to enter the market.
Global Impact and Market Rebound
CoinShares’ report also sheds light on the global impact of the recent market downturn. Despite a drop in Total Assets under Management to $75 billion during the correction, a rebound has seen it climb back to $85 billion. Trading volume in Exchange-Traded Products (ETPs) has surged to $19 billion for the week, surpassing the average weekly volume of $14 billion for the year. Interestingly, there has been a notable trend of inflows from all regions, indicating a widespread optimism towards the asset class post-market correction.
The influx of investments has come from various regions, with the US, Switzerland, Brazil, and Canada leading the pack with significant inflows. Germany, Australia, and Sweden have also contributed to the positive trend with substantial weekly inflows. However, the US remains the only country with net outflows for the month, tallying at $306 million.
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