- Digital asset products saw $176 million in inflows amid market correction recovery.
- Ethereum led with $155 million in inflows, driven by ETF launches.
Digital asset investment products experienced a notable rebound last week, with inflows totaling $176 million as investors capitalized on recent price weaknesses, reported coinshares. This surge in investment follows a period where total Assets under Management (AuM) dipped to $75 billion, a decline of over $20 billion during a market correction.
However, AuM has since recovered to approximately $85 billion. Trading activity in Exchange-Traded Products (ETPs) also spiked, reaching $19 billion, surpassing the $14 billion weekly average for the year.
The inflow activity was widespread, with every region recording positive sentiment towards digital assets. The United States led the charge with $89 million in inflows, followed by Switzerland ($20 million), Brazil ($19 million), and Canada ($12.6 million). Notably, the U.S. remains the only country facing net outflows month-to-date, totaling $306 million.
Ethereum- The Standout Performer With High Inflows
Ethereum emerged as the standout performer, attracting $155 million in inflows last week alone, bringing its year-to-date total to $862 million—the highest since 2021. This uptick is largely attributed to the recent launch of U.S. spot-based ETFs.
Meanwhile, Bitcoin started the week with outflows but ended with $13 million in weekly inflows. Short Bitcoin ETPs faced their largest outflows since May 2023, totaling $16 million, which reduced AuM for short positions to its lowest level this year.
The enthusiasm surrounding Ethereum ETFs has driven significant interest in altcoins, reflecting a shift in investor appetite. As traditional investors continue to explore opportunities in the digital asset space, the market narrative suggests a contrasting dynamic, with Bitcoin experiencing selling pressure while Ethereum shows signs of moderate buying interest.
Analysts suggest that this trend indicates growing confidence in altcoins, indicating that investors are diversifying their portfolios in response to market fluctuations, thereby enhancing overall market resilience and adaptability.
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