Ethereum
Weekly Ethereum Inflows Hit $34 Million – Are ETFs the Reason?
- Since the start of the year, crypto product inflows have exceeded $15 billion.
- Ethereum recorded its second week of inflows.
Digital asset investment products saw inflows totaling $185 million last week, marking the fourth consecutive week of inflows, digital asset investment firm CoinShares found in its new report.
Although this represents an 82% drop from the $1.05 billion in admissions recorded the previous week, it still pushed May’s admissions to $2 billion. Additionally, this took year-to-date inflows into cryptocurrency funds above the $15 billion mark.
According to the digital asset investment company, trading volumes decreased during the week under review. They totaled $8 billion, down 38% from the $13 billion recorded the previous week.
By the end of the week, as observed by CoinShares, total assets under management (AUM) for crypto-based investment products were over $97 billion. This is a decrease of 1.3% from the $98.43 billion recorded the previous week.
Regionally, most of last week’s flows into crypto funds came from the United States. According to CoinShares:
“The majority of inflows were from the US, with a net US$130 million, although outflows from legacy ETF issuers were US$260 million. Switzerland saw its second highest week of inflows this year, with US$36 million, while Canada saw a turnaround with inflows of US$25 million despite a net outflow in May totaling US$39 million. U.S. dollars.
Luck favors Ethereum
Since the United States Securities and Exchange Commission (SEC) approved the first round of spot purchase applications Ethereum [ETH] Exchange-traded funds (ETFs) from Grayscale, Bitwise, iShares, VanEck, Ark Invest, Invesco, Fidelity, and Franklin Templeton on May 22, ETH-based products saw significant inflows.
The week under review was the same. According to the CoinShares report, Ethereum-backed products recorded their second week of inflows, which amounted to $34 million.
This represented 18% of all entries recorded during this period. Additionally, last week’s liquidity flows into Ethereum pushed the altcoin’s year-to-date inflows to $11 million.
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CoinShares said:
“This represents a turnaround in investor confidence in an asset that had already seen a 10-week run of capital outflows, totaling $200 million.”
CoinShares found that last week’s Ethereum inflows had an impact Solana [SOL] due to the statistically positive correlation between them.
“This positive news for Ethereum also impacted Solana, which saw an additional inflow of $5.8 million last week.”