Ethereum
Ethereum weekly inflows hit $34 million – Are ETFs the reason?
Ethereum saw its second week of inflows as the market awaits when the newly approved spot ETH ETF will become tradeable.
- Year-to-date inflows into crypto products have surpassed $15 billion.
- Ethereum recorded its second week of inflows.
Digital asset investment products recorded inflows totaling $185 million last week, marking the fourth consecutive week of inflows, digital asset investment firm CoinShares found in its new report.
Although this marked an 82% decline from the $1.05 billion recorded in inflows the previous week, it still pushed May’s inflows to $2 billion. Also, it brought the year-to-date (YTD) inflows into cryptocurrency funds above the $15 billion mark.
According to the digital asset investment firm, trading volumes declined during the week under review. They totaled $8 billion, a 38% drop from the $13 billion registered the previous week.
At the end of the week, as observed by CoinShares, the total assets under management (AUM) for crypto-based investment products were above $97 billion. This was a 1.3% decline from the $98.43 billion recorded the previous week.
Regionally, most of last week’s flows into crypto funds came from the U.S. According to CoinShares:
“The majority of inflows were from the US, seeing a net US$130m, although incumbent ETF issuer outflows rose to US$260m. Switzerland saw its second largest week on inflows this year at US$36m, while Canada saw a turnaround with inflows of US$25m despite seeing a net outflow in May totaling US$39m.”
Luck smiles on Ethereum
Since the U.S Securities and Exchange Commission (SEC) approved the first set of applications for spot Ethereum [ETH] exchange-traded funds (ETFs) from Grayscale, Bitwise, iShares, VanEck, Ark Invest, Invesco, Fidelity, and Franklin Templeton on 22nd May, ETH-based products have recorded significant inflows.
The week under review was the same. According to CoinShares’ report, Ethereum-backed products recorded their second week of inflows, which amounted to $34 million.
This represented 18% of all inflows recorded during that period. Also, last week’s liquidity flows into Ethereum pushed the altcoin’s YTD inflows to $11 million.
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CoinShares said:
“This represents a turnaround in investor sentiment in an asset that had seen a 10-week run of outflows prior, totaling US$200m.”
CoinShares found that last week’s inflows in Ethereum impacted Solana [SOL] due to the statistically positive correlation between them.
“This positive news for Ethereum has also had an impact on Solana, which saw a further US$5.8m inflow last week.”
