Anika Begay
Ethereum and Solana saw net inflows last week despite a price correction among most cryptocurrencies. According to most recent Digital Asset Fund Flows Weekly Report released by CoinShares, cumulative inflows into these investment products reached an impressive $176 million over the course of the week. This positive trend was consistent across all regions, with each region recording positive inflows, signifying widespread interest from investors globally.
Surprisingly and departing from the Bitcoin Dominanceand trend, Ethereum-based investments The products that attracted the most influxes during the week.
Institutional Investors Focus on Ethereum and Solana
Despite fluctuations in market value, investor interest in digital assets has remained strong, reflecting institutional investors’ continued confidence in the long-term potential of cryptocurrencies. According to CoinShares, the extension cryptocurrency market correction had pushed total Assets under Management (AuM) of investment products from $95 billion to $75 billion. However, investment products have recovered somewhat on the back of steady inflows, which have helped bring AuM back to $85 billion.
Interestingly, last week’s activity was higher than usual. Exchange-traded products (ETP) trading volume reached $19 billion last week, which is higher than the weekly average of $14 billion so far this year. What was particularly notable about this trend was the shift in investor preferences, as Ethereum-based investment products emerged as the primary beneficiaries of these inflows. This marks a departure from Bitcoin’s traditional dominance in the market, where Bitcoin-related products typically attract the majority of investments.
In particular, Ethereum-based investment products attracted $155 million in inflows last week, accounting for 88% of total inflows. As a result, year-to-date inflows into Ethereum ETPs have surged to a multi-year high of $862 million, the highest since the 2021 bull market.
Bitcoin, on the other hand, managed to attract only $13 million in inflows. Multi-asset investment products came in second with $18.3 million in inflows. Solana-based products also managed to attract $4.5 million in inflows despite the cryptocurrency dropping below $115 early last week.
The bullish spirit was also reflected in Short-Bitcoin products. The data revealed that Short-Bitcoin ETPs saw their largest outflow since May 2023, with a total of $16 million withdrawn from these products. This outflow represents 23% of total assets under management for Short-Bitcoin ETPs.
In terms of geography, every region saw inflows last week. The United States came out on top with $89 million in inflows. Interestingly, the United States is the only region with negative inflows month-to-date. Switzerland, Brazil, and Canada had inflows of $21.3 million, $19.9 million, and $19.2 million, respectively.
What now?
This change away from bearish strategiesreflected in the outflows from Short-Bitcoin ETPs, aligns with the broader trend of renewed confidence in digital assets. The market now appears to be finally getting back on track from corrections. Most of the large-cap cryptocurrencies have started to see gains in the last 24 hours.
Featured image created with Dall.E, chart from Tradingview.com
