Ethereum, Solana Remain Institutional Investors Favorites As Inflows Continue

Ethereum
and
Solana
registered
net
inflows
last
week
despite
a
price
correction
among
most
cryptocurrencies.
According
to
the

most
recent

Digital
Asset
Fund
Flows
Weekly
Report
published
by
CoinShares,
the
cumulative
inflows
into
these
investment
products
reached
an
impressive
$176
million
over
the
week.
This
positive
trend
was
consistent
across
all
regions,
with
each
registering
positive
inflows,
signifying
widespread
interest
from
investors
globally. 

Surprisingly
and
deviating
from
the

Bitcoin
dominance
trend,

Ethereum-based
investment

products
attracted
the
most
inflows
during
the
week.

Institutional
Investors
Focus
On
Ethereum
And
Solana

Despite
the
fluctuations
in
market
value,
investor
interest
in
digital
assets
remained
strong,
reflecting
institutional
investors’
continued
confidence
in
the
long-term
potential
of
cryptocurrencies.
According
to
CoinShares,
the
extended

crypto
market
correction

had
pushed
the
total
Assets
under
Management
(AuM)
of
investment
products
from
$95
billion
to
$75
billion.
However,
investment
products
have
recovered
a
bit
due
to
consistent
inflows,
which
have
helped
push
the
AuM
back
up
to
$85
billion.

Interestingly,
last
week’s
activity
was
higher
than
usual.
Trading
volume
in
exchange-traded
products
(ETPs)
reached
$19
billion
last
week,
which
is
higher
than
the
$14
billion
weekly
average
this
year
so
far.
What
was
particularly
noteworthy
about
this
trend
was
the
shift
in
investor
preference,
as
Ethereum-based
investment
products
emerged
as
the
primary
beneficiaries
of
these
inflows.
This
marks
a
deviation
from
the
traditional
dominance
of
Bitcoin
in
the
market,
where
Bitcoin-related
products
typically
attract
the
majority
of
investment. 

Notably,
Ethereum-based
investment
products
attracted
$155
million
worth
of
inflows
last
week,
representing
88%
of
the
total
inflows.
As
such,
the
year-to-date
inflows
in
Ethereum
ETPs
ballooned
to
a
multi-year
peak
of
$862
million,
which
is
its
highest
since
the
2021
bull
market.

Bitcoin,
on
the
other
hand,
managed
to
attract
only
$13
million
worth
of
inflows.
Multi-asset
investment
products
came
in
second
with
$18.3
million
worth
of
inflows.
Solana-based
products
also
managed
to
attract
$4.5
million
in
inflows
despite
the
cryptocurrency

falling
below
$115
early
last
week.

The
spirit
of
bullishness
was
also
reflected
in
Short-Bitcoin
products.
The
data
revealed
that
Short-Bitcoin
ETPs
registered
their
largest
outflow
since
May
2023,
with
a
total
of
$16
million
being
withdrawn
from
these
products.
This
outflow
represents
23%
of
the
total
assets
under
management
for
Short-Bitcoin
ETPs. 

In
terms
of
geographical
location,
every
region
witnessed
inflows
last
week.
The
US
came
in
top
with
$89
million
in
inflows.
Interestingly,
the
US
is
the
only
region
still
with
a
negative
month-to-date
flow.
Switzerland,
Brazil,
and
Canada
had
inflows
of
$21.3
million,
$19.9
million,
and
$19.2
million,
respectively. 

What
Next?

This
shift

away
from
bearish
strategies,
reflected
in
the
outflows
from
Short-Bitcoin
ETPs,
aligns
with
the
broader
trend
of
renewed
confidence
in
digital
assets.
The
market
now
looks
like
it
is

finally
recovering

from
corrections.
Most
of
the
large-market-cap
cryptocurrencies
have
begun
to
post
gains
in
the
past
24
hours. 

Featured
image
created
with
Dall.E,
chart
from
Tradingview.com