The latest data from crypto asset manager CoinShares has shown a remarkable recovery in the cryptocurrency market. In its latest “Digital Asset Fund Flows Weekly Report,” the asset manager revealed Last week saw a significant uptick in investor confidence as digital asset investment products recorded inflows of $176 million.
According to James Butterfill, head of research at CoinShares, this increase in inflows indicates a strong and “unanimous” positive sentiment overall, with particular attention to ethereum-based funds.
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Analysis of cryptocurrency fund flows
Digging deeper into the report, Butterfill revealed that ethereum products have “clearly” stood out, attracting $155 million of total inflows, the largest year-to-date inflow since 2021.
This influx highlights renewed market interest in ethereum, especially with the recent introduction of spot ethereum exchange-traded funds (ETFs) in the United States, according to Butterfill.
Notably, the success of live trading of these funds has not only boosted ethereum’s position in the global crypto market but also appears to have played a pivotal role in the overall rise of its market capitalization and investment product offerings.
As for bitcoin, Butterfill revealed in the report that despite seeing outflows earlier in the week, bitcoin could still end the week with a positive total inflow of roughly $13 million.
On the other hand, bitcoin short ETPs, as reported, “saw their largest outflows since May 2023, totaling $16 million (23% of AuM), reducing AuM for short positions to its lowest level since the beginning of the year, indicating substantial investor outflow.”
Furthermore, Coinshares revealed that despite the initial volatility, overall market sentiment has been “overwhelmingly” positive. The report highlights that the inflows were not just isolated incidents, but part of a broader, global positive reception of digital assets.
It is worth noting that regions such as the United States, Switzerland, Brazil and Canada have been pioneers, injecting substantial capital into the market. It is worth noting that this global share of capital inflows highlights a collective bullish outlook despite significant previous declines.
Market performance: eth and btc
bitcoin and ethereum are struggling to defeat the bears, with both assets still holding their price above key levels.
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For exampleethereum is still trading above $2500 at the time of writing. with a current trading price of $2,689. This price comes against the backdrop of the asset’s remarkable rise of over 11% over the past week and the prolonged optimism of a 1.6% rise over the past day.
bitcoin has also seen a huge surge over the past week, rising by 11.4%. Although the asset has seen a 0.4% drop over the past day, it still maintains its price below $60,000.
Featured image created with DALL-E, chart by TradingView
