- Over the past week, crypto funds have seen impressive inflows, hitting $176 million.
- Ethereum products have largely fueled this surge, driven by enthusiasm surrounding spot Ether ETFs in the U.S.
- Market sentiment has generally shifted towards altcoins, showing increased investor interest beyond Bitcoin.
Ethereum’s spot ETFs lead to substantial inflows in crypto funds, marking a notable week in the digital asset market.
Ethereum ETFs Lead Crypto Inflows to $176 Million
Crypto products enjoyed robust inflows of $176 million in the last seven days, with Ethereum at the forefront owing to the momentum spot Ether ETFs have gained. According to recent data from CoinShares, market participants took advantage of the price decline last week as a prime buying opportunity, thereby enhancing their exposure to the market. Bitcoin, initially experiencing outflows, managed to end the week with net inflows totaling $13 million.
Ethereum Gains Momentum as Spot ETFs Turn Positive
Defying the typical trends post-spot Bitcoin ETFs approval, Ethereum and multi-asset products have attracted more investor attention. ETH-based products saw a remarkable $155.4 million in inflows, bolstered by the positive performance of Ethereum-based ETFs. “Ethereum has benefited most from the recent market correction, drawing $155 million last week,” noted market analysts. This shift has brought year-to-date inflows to $862 million, the highest since 2021, largely spurred by the new U.S. spot-based ETFs.
Impact on Short Bitcoin Positions
On the other hand, short Bitcoin positions witnessed significant outflows amounting to $16 million, marking the largest decline since May 2023. This has impacted the Assets Under Management (AUM) for short positions, which currently stands at $84.9 billion. The uptick in Ethereum ETF investments also influenced monthly inflow figures, maintaining Ethereum’s edge over competing digital assets.
Shifting Investor Focus to Altcoins
Recent trading behaviors indicate growing investor interest in altcoins following the market’s recovery. Investors leveraged the opportunity by redirecting funds into altcoins, notably those linked to Ethereum ETFs. This trend underscores a broader shift towards crypto ETFs, which have driven traditional investments into the cryptocurrency market. While Bitcoin continues to face selling pressure, Ethereum maintains moderate buying pressure. Notably, last week’s crypto fund inflows were observed across various jurisdictions, reflecting a global investor embrace of digital assets.
Conclusion
The crypto market has clearly experienced a significant inflow of funds over the last week, largely driven by Ethereum products and their associated ETFs. This shift highlights the changing dynamics of the market, with investors increasingly favoring altcoins. As traditional investors continue to make inroads into digital assets through approved funds, the market’s outlook remains optimistic provided the regulatory environment remains supportive.
