Cryptocurrency investment products saw significant inflows of $176 million as investors capitalized on recent price declines, according to CoinShares’ latest weekly report.
James Butterfill, head of research at CoinShares, noted that total assets under management (AUM) of crypto ETPs fell to $75 billion amid the correction but has recovered to $85 billion as of the latest report.
Trading volume for exchange-traded products (ETPs) rose to $19 billion during the period, surpassing this year's weekly average of $14 billion.
ethereum domina
ethereum was the biggest beneficiary of the market correction, with $155 million in inflows last week. This brings its year-to-date inflows to $862 million, the highest since 2021, mainly due to the recent launch of spot ETFs in the United States.
Market experts have praised the performance of ethereum ETFs since their launch in July. To put this into context, Nate Geraci, president of ETF Store, noted that BlackRock’s iShares ethereum ETF is now one of the top six ETF launches in 2024.
geraci x.com/NateGeraci/status/1822787125957312917″>he stressed:
“The iShares ethereum ETF has attracted over $900 million in less than three weeks and is likely to hit $1 billion this week.”
Meanwhile, bitcoin had a mixed performance last week. The flagship digital asset started the week with outflows but saw a trend reversal towards the end as investors piled $13 million into btc-related investment products.
In contrast, bitcoin short ETPs saw their most significant outflows since May 2023, amounting to $16 million, or 23% of their assets under management. This reduction in assets under management for short positions reflects a significant withdrawal of investors.
Other digital assets including Solana, XRP, Cardano and Litecoin also saw modest inflows of around $6 million last week.
Interestingly, inflows were seen across all regions, indicating a general positive sentiment towards this asset class following the recent price correction.
The United States topped the list with $89 million, followed by Switzerland with $20 million, Brazil with $19 million and Canada with $12.6 million. However, the United States remains the only country to have experienced net outflows so far this month, totaling $306 million.
