The latest data from crypto asset management firm CoinShares shows a notable comeback in the cryptocurrency market. In its latest weekly report on digital asset fund flows, the asset management firm said open Last week saw a significant surge in investor confidence, with digital asset investment products seeing inflows of $176 million.
According to James Butterfill, head of research at CoinShares, this surge in inflows indicates strong and “uniform” positive sentiment across the board, with a particular focus on Ethereum-based funds.
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Cryptocurrency Fund Flow Analysis
Digging deeper into the report, Butterfill revealed that Ethereum products “clearly stood out,” attracting $155 million in total inflows, the highest YTD since 2021.
This influx highlights the renewed interest in Ethereum in the market, especially with the recent launch of Ethereum exchange-traded funds (ETFs) in the United States, according to Butterfill.
It is worth noting that the successful direct trading of these funds has not only strengthened Ethereum’s position in the global cryptocurrency market, but also appears to have played a pivotal role in the overall increase in market cap and investment product offerings.
As for Bitcoin, Butterfill revealed in the report that despite seeing outflows earlier in the week, Bitcoin still managed to end the week with a total positive inflow of around $13 million.
On the other hand, Bitcoin short ETFs reportedly saw “their largest outflows since May 2023, totaling $16 million (23% of AUM), reducing short AUM to its lowest level since the start of the year, indicating a significant exit by investors.”
Furthermore, Coinshares revealed that despite the initial volatility, overall market sentiment was “overwhelmingly positive.” The report highlights that the inflows were not isolated incidents but part of a broader global positive reception for digital assets.
It is worth noting that regions such as the United States, Switzerland, Brazil and Canada were at the forefront of the beneficiaries, as they pumped huge capital into the market. It is worth noting that this global participation in the flows highlights a collective bullish outlook despite the previous major declines.
Market Performance: ETH and BTC
Bitcoin and Ethereum are struggling to overcome the bears, as both assets continue to maintain their price levels above key levels.
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For exampleEthereum price is still trading above $2,500 at the time of writing, At a current trading price of $2,689, this price comes against the significant increase of more than 11% in the past week and the extended uptrend of 1.6% in the past day.
Bitcoin also saw a significant rise over the past week, rising by 11.4%. Although the currency saw a 0.4% decline over the past day, it still maintains its price below $60,000.
Featured image created using DALL-E, chart from TradingView
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