The latest data from cryptocurrency asset manager CoinShares shows a notable comeback in the crypto market. In its latest ‘Digital Asset Fund Flows Weekly Report’, the asset manager said investor confidence rose significantly last week, with $176 million inflows into digital asset investment products.
According to James Butterfill, head of research at CoinShares, the surge in inflows indicates strong and “overall” positive sentiment, with a particular focus on Ethereum-based funds.
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Crypto Fund Flow Analysis
Digging deeper into the report, Butterfill said Ethereum products “clearly” stood out, attracting $155 million in total inflows, the highest year-to-date inflows since 2021.
According to Butterfill, this inflow reflects renewed market interest in Ethereum, particularly following the recent introduction of a spot Ethereum exchange-traded fund (ETF) in the United States.
In particular, the successful real-time trading of these funds appears to have not only strengthened Ethereum’s position in the global cryptocurrency market, but also played a pivotal role in the overall increase in market capitalization and investment product offerings.
For Bitcoin, Butterfill said in the report that despite outflows earlier in the week, Bitcoin is likely to end the weekend with total inflows of around $13 million.
On the other hand, as reported, short Bitcoin ETPs “saw the largest outflows since May 2023, totaling $16 million (23% of AUM), bringing short positions’ AUM to its lowest level since the beginning of the year, indicating significant investor exodus.”
Coinshares also said that despite the initial volatility, overall market sentiment remains “overwhelmingly” positive. The report emphasizes that the inflows are not an isolated event, but part of a broader, global positive response to digital assets.
In particular, regions such as the US, Switzerland, Brazil and Canada were the leaders, injecting significant capital into the market. It is worth noting that this global participation in inflows highlights the collective bullish outlook despite the previous major decline.
Market Performance: ETH and BTC
Bitcoin and Ethereum are struggling to overcome the downtrend, with both assets holding prices above key benchmark levels.
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for exampleAs of this writing, Ethereum is still trading above $2,500. The current trading price is $2,689, which is against the long-term bullish trend that has seen the asset rise significantly by more than 11% over the past week and surge by 1.6% over the past day.
Bitcoin also saw a huge surge last week, rising 11.4%. The asset is down 0.4% over the past day, but is still trading below $60,000.
Featured image made with DALL-E, charts from TradingView