Ethereum Leads Market Recovery With $155M Inflows Amid Recent Downturn

Ethereum has benefited the most from the recent market downturn as investors appear to have viewed the price weakness as a buying opportunity.

In fact, data suggests that Ethereum managed to attract $155 million in inflows over the past week. According to CoinShares, the latest wave of inflows pushed its total year-to-date inflows to $862 million, the highest level since 2021, mainly fueled by the recent introduction of US cash-based ETFs.

Rebound of incoming flows

Besides Ethereum, the positive sentiment is also evident for other cryptoassets. Bitcoin, for example, saw a significant increase in inflows towards the end despite initial outflows at the beginning of the week, bringing the weekly total to $13 million.

On the other hand, short Bitcoin ETPs saw their largest outflows since May 2023, totaling $16 million (23% of AuM), which pushed their AuM for short positions to the lowest level of the year, indicating a major outflow by investors.

CoinShares’ weekly digital asset fund flows report revealed that the positive trend also extended to investment products linked to Solana, XRP, and Cardano, which saw weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively.

Looking back, digital asset investment products collectively saw $176 million in inflows as investors viewed recent price declines as a buying opportunity. While total assets under management (AUM) for these products fell to $75 billion — losing more than $20 billion during the market correction — it has since rebounded to $85 billion, according to CoinShares estimates.

At the same time, exchange-traded product (ETP) trading volume jumped to $19 billion for the week, surpassing the $14 billion weekly average seen this year.

Global optimism is growing

CoinShares also revealed an unusual pattern of capital inflows from all regions last week. This indicates a collective optimism towards the asset class after the recent price decline. The largest inflows came from the United States, Switzerland, Brazil, and Canada, totaling $89 million, $21.3 million, $20 million, and $19.2 million, respectively.

Additionally, Germany, Australia and Sweden recorded $12.6 million, $5.9 million and $5.1 million in weekly inflows, respectively. Despite this, the United States remains the only country to record net outflows for the month, with $306 million.