Ethereum leads market recovery with $155 million inflows amid recent downturn

ethereum has been the biggest beneficiary of the recent market crash, as investors appear to have viewed the price weakness as a buying opportunity.

In fact, data suggests that ethereum has managed to attract $155 million in inflows over the past week. According to CoinShares, the latest round of inflows boosted its total inflows so far this year to $862 million, the highest figure since 2021, driven primarily by the recent introduction of US spot market-based ETFs.

Rebound in capital inflows

Aside from ethereum, positive sentiment is also evident for other cryptoassets. bitcoin, for example, saw a significant spike in inflows towards the end despite initial outflows earlier in the week, bringing the weekly total to $13 million.

On the other hand, bitcoin short ETPs recorded their largest outflows since May 2023, totaling $16 million (23% of AuM), which has reduced their AuM for short positions to the lowest level of the year, indicating a significant investor outflow.

CoinShares Weekly Digital Asset Fund Flows Report revealed that the positive trend also extended to Solana, XRP and Cardano-related investment products, which received weekly inflows of $4.5 million, $0.7 million and $0.6 million, respectively.

Zooming out a bit, digital asset investment products collectively saw $176 million in inflows as investors perceived recent price declines as an opportunity to buy. While total assets under management (AuM) for these products had fallen to $75 billion (losing over $20 billion during the market correction), they have since recovered to $85 billion, according to CoinShares estimates.

Meanwhile, trading volume in exchange-traded products (ETPs) rose to $19 billion during the week, surpassing the weekly average of $14 billion seen this year.

Global optimism increases

CoinShares also revealed an unusual trend of capital inflows from all regions last week. This indicated a collective optimism towards the asset class following the recent price drop. The most significant capital inflows came from the US, Switzerland, Brazil, and Canada, totaling $89 million, $21.3 million, $20 million, and $19.2 million, respectively.

Germany, Australia and Sweden also recorded weekly inflows of $12.6 million, $5.9 million and $5.1 million respectively. However, the United States remains the only country with net outflows for the month, with $306 million.

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