Ethereum Products See Highest Year-to-Date Inflows Since 2021: CoinShares Report

Latest data from crypto asset manager CoinShares has shown a noticeable comeback in the crypto market. In its latest ‘digital asset fund flows weekly report,’ the asset manager revealed that last week marked a significant uptick in investor confidence

Cryptocurrency markets experienced a surge in investor optimism during the past week, as noted by the latest data from crypto asset manager CoinShares in its ‘digital asset fund flows weekly report.’

The report highlighted a total of $176 million in inflows to digital asset investment products, signaling a strong positive sentiment among investors.

According to James Butterfill, head of research at CoinShares, this marks the first week of inflows since four consecutive weeks of outflows.

Delving into the specifics of the report, Butterfill pointed out that Ethereum products stood out "distinctly," attracting $155 million of the total inflows, which marks the highest year-to-date intake since 2021.

This influx is particularly noteworthy considering the recent introduction of spot Ethereum exchange-traded funds (ETFs) in the United States, Butterfill noted.

The successful live trading of these funds not only boosted Ethereum's position in the global crypto market but also appears to have played a role in the overall increase in its market cap and investment product offerings.

As for Bitcoin, Butterfill noted in the report that despite seeing outflows earlier in the week, Bitcoin could still end the week with a positive total inflow of approximately $13 million.

On the other hand, Short Bitcoin ETPs, as reported, “saw their largest outflows since May 2023, totaling $16m (23% of AuM), reducing AuM for short positions to its lowest level since the start of the year, indicating a substantial investor exit.”

Furthermore, Coinshares disclosed that despite the initial volatility, the overall market sentiment has been “overwhelmingly” positive. The report highlights that the inflows weren't just isolated incidents but part of a broader, global positive reception to digital assets.

Notably, regions such as the United States, Switzerland, Brazil, and Canada have been front runners, injecting substantial capital into the market. It is worth noting that this global participation in inflows highlights a collective bullish outlook despite previous major dips.

In related news, crypto asset manager CoinShares also recently reported on the impact of the Federal Reserve's recent interest rate hike on the crypto market.

The report noted that while the hike did lead to outflows from digital asset investment products, the outflows were smaller than those experienced during previous rate hikes.

This, according to the report, could indicate a growing resilience among investors and a possible shift in viewing crypto assets as a hedge against inflation, as was commonly believed during 2021.

Moreover, the report also highlighted the role of regulatory developments in influencing investor sentiment and capital flows within the digital asset market.

In particular, the report noted the ongoing discussions surrounding the classification of digital assets by the U.S. Securities and Exchange Commission (SEC) and the potential impact of such developments on the broader crypto market.

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