Cryptocurrency investment products saw significant inflows of $176 million as investors capitalized on recent price declines, according to the latest weekly report from CoinShares.
James Butterfill, head of research at CoinShares, noted that total assets under management (AUM) of crypto ETPs dropped to $75 billion amid the correction but rebounded to $85 billion as of the latest report.
Trading volume in exchange-traded products (ETPs) jumped to $19 billion during the period, surpassing this year’s weekly average of $14 billion.
Ethereum Dominates
Ethereum has benefited the most from the market correction, with $155 million in inflows last week. This brings its year-to-date inflows to $862 million, the highest level since 2021, mainly due to the recent launch of US spot-based ETFs.
Market experts have been praising the performance of Ethereum ETFs since their launch in July. To put things into context, Nate Geraci, president of ETF Store, pointed out that BlackRock’s iShares Ethereum ETF is now one of the top six ETFs launching in 2024.
Geraci noted:
“The iShares Ethereum ETF has attracted over $900 million in less than three weeks and is expected to hit $1 billion this week.”
Bitcoin, meanwhile, had a mixed performance last week. The flagship digital asset started the week with capital outflows, but saw a reversal towards the end, with investors pouring $13 million into BTC-related investment products.
In contrast, short Bitcoin ETPs saw their largest outflows since May 2023, amounting to $16 million, or 23% of their AUM. This reduction in AUM for short positions reflects a significant investor withdrawal.
Other digital assets including Solana, XRP, Cardano, and Litecoin also saw modest inflows of around $6 million last week.
Interestingly, capital inflows were seen across all regions, indicating an overall positive sentiment towards the asset class following the recent price correction.
The United States leads the way 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 record net capital outflows since the beginning of the month, totaling $306 million.
