Bitcoin inflows surge $436 million as Ethereum funds face outflows

bitcoin (btc) funds saw $436 million in inflows last week, while ethereum (eth) funds lost $19 million in the same period, as reported by asset management firm CoinShares. Overall, cryptocurrency funds saw $436 million in inflows last week, recovering from $1.2 billion in outflows.

Additionally, funds with short positions on bitcoin saw $8.5 million in capital outflows after three consecutive weeks of inflows. Notably, positive flows into btc-related products ended a 10-day streak of outflows totaling nearly $1.2 billion, the report highlights.

ethereum Hit by Profitability Concerns

On the other hand, the shortcomings of ethereum-related products could be related to concerns about the profitability of the mainnet following the Dencun upgrade on March 13 this year, which significantly reduced the transaction costs of ethereum-based layer-2 blockchains.

As a result, fees paid for L2 to store data on ethereum dropped by up to 99.6% by 2024, according to Growthepie. data reveals. Furthermore, data Data from Token Terminal shows that ethereum’s weekly inflows are at their lowest level since August 12, averaging $4.56 million.

Despite ethereum’s woes, Solana saw inflows for the fourth consecutive week, totaling $3.8 million. Multi-asset funds also saw inflows worth $22.8 million.

The report noted that appetite for cryptocurrency-related investment products picked up pace late last week.

This can be attributed to a change in market expectations regarding a possible 50 basis point interest rate cut on September 18, following comments by former New York Federal Reserve President Bill Dudley.

The United States leads capital inflows

At the regional level, the United States topped the list with inflows of $416 million, followed by Switzerland with $27 million. It is worth noting that Switzerland is the second country with the largest volume of inflows so far this year, approaching $400 million.

Germany also recorded positive flows last week, totaling $10.6 million. However, the country's net flows amount to negative $319 million so far in 2024.

Canada and Sweden experienced smaller outflows of $18 million and $4.6 million.

Blockchain stocks saw $105 million in inflows following the creation and launch of several new ETFs in the US.

ETF trading volumes remained stable at $8 billion for the week, significantly lower than the $14.2 billion average seen this year so far.