Ethereum (ETH) Leads as Digital Asset Inflows Rebound Amid Market Correction

Digital
asset
investment
products
experienced
a
notable
rebound
in
inflows,
totaling
$176
million
over
the
past
week,
according
to
CoinShares.
This
resurgence
comes
as
investors
capitalized
on
recent
price
weaknesses,
viewing
them
as
buying
opportunities.

Ethereum
Dominates
Inflows

Ethereum
(ETH)
emerged
as
the
primary
beneficiary
of
the
market
correction,
attracting
$155
million
in
inflows.
This
surge
has
brought
Ethereum’s
year-to-date
inflows
to
$862
million,
the
highest
since
2021.
The
recent
launch
of
US
spot-based
ETFs
has
significantly
contributed
to
this
influx.

Bitcoin’s
Mixed
Performance

Bitcoin
(BTC)
had
a
mixed
week,
starting
with
outflows
but
concluding
with
substantial
inflows,
totaling
$13
million.
On
the
other
hand,
short
Bitcoin
ETPs
witnessed
their
largest
outflows
since
May
2023,
amounting
to
$16
million,
which
is
23%
of
their
Assets
under
Management
(AuM).
This
reduction
has
brought
AuM
for
short
positions
to
its
lowest
level
since
the
beginning
of
the
year,
indicating
a
significant
investor
exit.

Global
Inflows
Indicate
Positive
Sentiment

Interestingly,
every
region
reported
inflows
last
week,
suggesting
a
unanimous
positive
sentiment
towards
digital
assets
following
the
recent
price
correction.
The
most
notable
inflows
were
from
the
US,
Switzerland,
Brazil,
and
Canada,
with
$89
million,
$20
million,
$19
million,
and
$12.6
million,
respectively.
However,
the
US
remains
the
only
country
to
see
net
outflows
month-to-date,
totaling
$306
million.

Increased
Trading
Activity

Trading
activity
in
Exchange-Traded
Products
(ETPs)
was
significantly
higher
than
usual,
reaching
$19
billion
for
the
week
compared
to
the
$14
billion
weekly
average
for
the
year
so
far.
Despite
the
initial
fall
to
$75
billion
in
total
AuM
due
to
the
market
correction,
it
has
since
recovered
to
$85
billion.

For
further
details,
the
original
report
can
be
accessed
on

CoinShares.

Image
source:
Shutterstock