Ethereum Lead Weekly Inflows With $155M, With Bitcoin Attracting Only $13M

Last week, digital asset investment products experienced a notable shift as investors responded to recent market volatility.

CoinShares data reveals that these products recorded a net inflow of $176 million, with many seeing the price dip as a strategic buying opportunity. This figure, however, represents a decline from the previous week’s $245 million inflow, indicating a more cautious approach amid market uncertainty.

Ethereum stood out as the primary recipient of investor interest, securing $155.4 million in inflows. This influx has driven Ethereum’s year-to-date inflows to $862 million, the highest since 2021. 

According to CoinShares, the surge is largely driven by the launch of U.S. spot-based ETFs, which have attracted substantial attention to Ethereum. XRP and Cardano see only $0.7M and $0.6M inflows, respectively, while Solana captures $4.5M.

Bitcoin Sees Fluctuating Inflows 

In contrast, Bitcoin’s investment patterns showed some fluctuations throughout the week. Initially, Bitcoin experienced outflows, but later in the week, it managed to attract $13 million in total inflows. Meanwhile, Short Bitcoin ETPs faced significant outflows, with $16.2 million exiting these products—the largest outflows since May 2023. 

This decrease, representing a 23% reduction in assets under management (AuM) for short positions, suggests that investors are re-evaluating their stance on Bitcoin, potentially anticipating a more favorable outlook.

Global Investor Sentiment 

Investor sentiment towards digital assets appeared broadly positive across different regions. The United States, Switzerland, Brazil, and Canada led with inflows of $89 million, $21.3 million, $19.9 million, and $19.2 million, respectively. 

Despite the U.S. leading in inflows, it remains the only country with net outflows month-to-date, totaling $306 million. 

Inflow Decline From Previous Report

The previous CoinShares report, dated July 29, highlighted that digital asset investment products recorded modest inflows of $245 million during that week. This occurred despite a significant rise in trading volumes, which surged to $14.8 billion, marking the highest level since May. The increase in trading activity was primarily driven by the recent launch of Ethereum ETFs, which has fueled investor interest.

Bitcoin emerged as the clear leader in terms of inflows, attracting a substantial $519 million during the week. This brought its month-to-date (MTD) inflows to $3.6 billion and year-to-date (YTD) inflows to a record-breaking $19 billion. The surge in Bitcoin inflows was largely attributed to U.S. electioneering comments positioning it as a potential strategic reserve asset, coupled with growing expectations of a Federal Reserve rate cut in September 2024.

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• Source: https://thecryptobasic.com/2024/08/12/ethereum-lead-weekly-inflows-with-155m-with-bitcoin-attracting-only-13m/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-lead-weekly-inflows-with-155m-with-bitcoin-attracting-only-13m