Ethereum continues to dominate the crypto investment products market, accounting for a significant 88% of the $176 million inflow in the past week, according to a report by CoinShares. This surge in investment comes as investors took advantage of recent price dips in the market.
The total assets under management (AUM) for crypto ETPs initially dropped to $75 billion during a market correction but have since rebounded to $85 billion, showcasing the resilience of the market. Trading volumes for exchange-traded products (ETPs) also saw a notable increase, reaching $19 billion, surpassing the weekly average for this year.
Ethereum particularly benefitted from the market correction, attracting $155 million in inflows last week alone. This brings the total year-to-date inflows for Ethereum to $862 million, the highest since 2021. The launch of US spot-based ETFs played a significant role in this surge, with market experts praising the performance of Ethereum ETFs, such as BlackRock’s iShares Ethereum ETF.
In comparison, Bitcoin had a more mixed performance, starting the week with outflows but eventually seeing a trend reversal with $13 million in inflows to BTC-related investment products. However, short Bitcoin ETPs experienced significant outflows amounting to $16 million, reflecting a notable investor withdrawal from short positions.
Other digital assets like Solana, XRP, Cardano, and Litecoin also saw modest inflows of around $6 million last week, indicating a broader positive sentiment towards the asset class. Inflows were observed across all regions, with the US leading at $89 million, followed by Switzerland, Brazil, and Canada. Despite the overall positive sentiment, the US remains the only country with net outflows month-to-date, totaling $306 million.
Overall, the crypto investment products market continues to show resilience and growth, with Ethereum leading the way in attracting significant inflows from investors. The market correction served as an opportunity for investors to capitalize on price dips and increase their exposure to digital assets, driving trading volumes and inflows across various cryptocurrencies.