Ethereum (ETH) Leads as Digital Asset Inflows Rebound Amid Market Correction
Tony Kim Aug 13, 2024 06:52
Ethereum sees significant inflows amid market correction, leading the digital asset fund recovery with $155m in new investments.
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.
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