Ethereum Leads Recovery with $155M Inflows as Market Shows Resilience After Recent Downturn

Ethereum has emerged as a key beneficiary of the recent market downturn, with investors seizing the opportunity to buy the dip. Over the past week, Ethereum attracted $155 million in inflows, according to data from CoinShares. This influx has boosted its year-to-date total inflows to $862 million, marking the highest level since 2021, largely driven by the introduction of US spot-based ETFs.

The rebound isn't limited to Ethereum alone. Bitcoin also saw a notable uptick in inflows towards the end of the week, despite earlier outflows, bringing its weekly total to $13 million. Conversely, short Bitcoin ETPs experienced their largest outflows since May 2023, totaling $16 million (23% of AuM). This drop has reduced their AuM for short positions to the year's lowest point, signaling a major exit by investors.

CoinShares’ latest Digital Asset Fund Flows Weekly Report highlights that other cryptocurrencies such as Solana, XRP, and Cardano also saw positive inflows, receiving $4.5 million, $0.7 million, and $0.6 million, respectively.

Digital asset investment products recorded $176 million in inflows as investors took advantage of recent price declines. Despite a previous drop in Total Assets under Management (AuM) to $75 billion, a recovery has pushed AuM back up to $85 billion, according to CoinShares.

Trading volume in Exchange-Traded Products (ETPs) surged to $19 billion for the week, exceeding the $14 billion weekly average observed this year. Notably, inflows were seen across all regions, reflecting a global optimism towards digital assets following the recent price dip. The largest inflows came from the US ($89 million), Switzerland ($21.3 million), Brazil ($20 million), and Canada ($19.2 million). Germany, Australia, and Sweden also saw inflows of $12.6 million, $5.9 million, and $5.1 million, respectively. However, the US remains the only country with net outflows for the month, totaling $306 million.