Ethereum and Solana saw positive net inflows last week despite price corrections in most cryptocurrencies. Reported in the latest Digital Asset Fund Flows Weekly Report by CoinShares, the combined inflows into these investment products totaled an impressive $176 million throughout the week. This favorable trend was seen globally, with all regions experiencing positive inflows, indicating a widespread interest from investors worldwide.
In a surprising turn from the usual Bitcoin dominance, investment products based on Ethereum attracted the most inflows during the week.
Institutional Investors Focused on Ethereum And Solana
Despite fluctuations in market value, interest in digital assets from investors remained high, reflecting institutional investors’ enduring confidence in the long-term potential of cryptocurrencies. CoinShares noted that the recent crypto market correction caused the Assets under Management (AuM) of investment products to drop from $95 billion to $75 billion. However, consistent inflows have helped raise AuM back to $85 billion.
The previous week saw an increased level of activity, with exchange-traded products (ETPs) hitting $19 billion in trading volume, exceeding the $14 billion weekly average for this year so far. A significant development was the shift in investor preference towards Ethereum-based investment products, which stood out as the primary recipients of these new inflows. This marked a departure from the typical Bitcoin dominance, where Bitcoin-related products usually attract the majority of investments.
Ethereum-based investment products received $155 million in inflows last week, representing 88% of the total inflows. This surge pushed year-to-date inflows in Ethereum ETPs to a multi-year high of $862 million, the highest since the 2021 bull market.
In contrast, Bitcoin attracted only $13 million in inflows, while multi-asset investment products saw $18.3 million in inflows. Solana-based products also managed to attract $4.5 million in inflows despite the cryptocurrency dropping below $115 early in the week.
The bullish sentiment extended to Short-Bitcoin products, with data showing the largest outflow from Short-Bitcoin ETPs since May 2023, with a total of $16 million withdrawn, representing 23% of the total assets under management for these products.
Geographically, all regions experienced inflows last week. The US led with $89 million in inflows, albeit being the only region with negative month-to-date flow. Switzerland, Brazil, and Canada recorded inflows of $21.3 million, $19.9 million, and $19.2 million, respectively.
What’s Next?
The shift in investor sentiment away from bearish strategies, as evidenced by the outflows from Short-Bitcoin ETPs, reflects a broader trend of increasing confidence in digital assets. The market appears to be recovering from corrections, with many large-market-cap cryptocurrencies starting to make gains in the past 24 hours.
Image Source: alfernec / Shutterstock
