Ethereum Sees the Greatest Advantage from the Recent Market Downturn as Investors View Price Weakness as a Buying Opportunity

In fact, data suggests that Ethereum has managed to attract $155 million in inflows over the past week.

Investors seemed to have viewed the recent market downturn as a buying opportunity, especially for Ethereum, which saw the greatest advantage.

According to data, Ethereum attracted $155 million in inflows over the past week. These inflows boosted its year-to-date total to $862 million, the highest since 2021, largely driven by the recent introduction of US spot-based ETFs.

Bitcoin also experienced a significant increase in inflows toward the end of the week, despite initial outflows at the beginning. The total inflows for Bitcoin amounted to $13 million.

On the other hand, short Bitcoin ETPs recorded their largest outflows since May 2023, totaling $16 million (23% of AuM). These outflows indicate a major investor exit from short positions, driving the AuM for short positions to the year's lowest level.

CoinShares' Digital Asset Fund Flows Weekly Report further revealed that positive sentiment extended to investment products linked to Solana, XRP, and Cardano, which received weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively.

Overall, digital asset investment products collectively experienced $176 million in inflows as investors perceived recent price declines as an opportunity to buy.

While the Total Assets under Management (AuM) for these products had dropped to $75 billion — losing more than $20 billion during the market correction — it has since rebounded to $85 billion, as per CoinShares' estimates.

Meanwhile, trading volume in Exchange-Traded Products (ETPs) surged to $19 billion for the week, surpassing the $14 billion weekly average seen this year.

Global Optimism Boosts

In an unusual trend, CoinShares reported inflows from every region last week, indicating a collective optimism toward the asset class following the recent price dip.

The most significant inflows came from the US, Switzerland, Brazil, and Canada, totaling $89 million, $21.3 million, $20 million, and $19.2 million, respectively.

Additionally, Germany, Australia, and Sweden saw $12.6 million, $5.9 million, and $5.1 million, respectively, in weekly inflows.

However, despite these inflows, the US remained the only country with net outflows for the month, amounting to $306 million.

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