Digital Asset Funds See $176M Inflows in Past Week

Over the past seven days, digital asset funds have seen a net inflow of $176 million, signaling renewed investor confidence in the cryptocurrency market. According to a report from CoinShares, this influx of capital is particularly notable as it follows a recent decline in digital asset prices, which many investors viewed as a prime buying opportunity to increase their market exposure.

Ethereum ETFs Led the Chart With the Highest Inflows

Notably, Ethereum-based exchange-traded funds (ETFs) were at the forefront of this surge in investment, primarily driven by the recent launch of spot Ether ETFs. According to reports, Ethereum attracted $155.4 million in inflows last week. The intense interest in these funds brings ETH year-to-date inflows to $862 million, the highest since 2021. 

Recall that the total assets under management of digital products fell to $75 billion; however, they have bounced back to $85 billion. Intriguingly, all regions experienced inflows, indicating widespread positive sentiment toward the asset class following the recent price correction. In the United States, Switzerland, Brazil, and Canada, there were inflows of $89 million, $20 million, $19 million, and $12.6 million, respectively.

Short Bitcoin ETP Experienced Outflows

James Butterfill, CoinShares’ Head of Research, pointed out that Bitcoin experienced outflows at the beginning of the week but ended with approximately $13 million in inflows. Nevertheless, short Bitcoin Exchange-Traded Products (ETPs) witnessed the most significant outflows since May 2023, amounting to $16 million. This decreased the AUM for short positions to its lowest level since the start of the year, suggesting a significant exit by investors.

This mixed picture of digital assets reflects a dynamic and evolving market landscape. While Bitcoin remains a dominant force, the substantial interest in Ethereum ETFs points to a growing diversification within the digital asset investment space.

Ether ETFs Debut with $1.08B in Trading Volume

The launch of Ether Spot Exchange-Traded Funds has been a moment of celebration for the crypto community. These products generated around $1.08 billion in cumulative trading volume on their first day. This impressive figure, though about 23% of what Spot Bitcoin ETFs saw on their first day, signaled a promising future for Ether ETFs.

The converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) led the pack with significant volumes. According to preliminary data from Bloomberg ETF analyst Eric Balchunas, ETHE recorded $458 million, while ETHA saw $248.7 million in trading. Fidelity Ethereum Fund (FETH) came third with $137.2 million, and the Bitwise Ethereum ETF (ETHW) saw $94.3 million.

Interestingly, these investment products recorded a net inflow of $106.6 million on their launch day.