The latest data from crypto asset manager CoinShares has revealed a significant uptick in investor confidence in the crypto market. According to the ‘digital asset fund flows weekly report,’ digital asset investment products saw $176 million in inflows last week. This surge in inflow signals a strong, “unanimous” positive sentiment across the board, with particular attention to Ethereum-based funds.
Renewed Interest in Ethereum
Delving into the report, it was revealed that Ethereum products have distinctly stood out, attracting $155 million of the total inflows, the highest year-to-date intake since 2021. This influx highlights the market’s renewed interest in Ethereum, especially with the recent introduction of spot Ethereum exchange-traded funds (ETFs) in the United States. The successful live trading of these funds has boosted Ethereum’s position in the global crypto market and played a pivotal role in the overall increase in its market cap and investment product offerings.
Despite seeing outflows earlier in the week, Bitcoin could still end the week with a positive total inflow of approximately $13 million. On the other hand, Short Bitcoin ETPs saw their largest outflows since May 2023, totaling $16 million (23% of AuM), reducing AuM for short positions to its lowest level since the start of the year, indicating a substantial investor exit.
CoinShares disclosed that despite the initial volatility, the overall market sentiment has been overwhelmingly positive. The report highlights that the inflows weren’t just isolated incidents but part of a broader, global positive reception to digital assets. Regions such as the United States, Switzerland, Brazil, and Canada have been front runners, injecting substantial capital into the market. This global participation in inflows highlights a collective bullish outlook despite previous major dips.
Bitcoin and Ethereum are struggling to defeat the bears, with both assets still maintaining their price mark above major key levels. For instance, Ethereum currently trades above $2,500, with a current trading price of $2,689. This price mark comes against the asset’s notable increase of more than 11% in the past week and the extended bullishness of a 1.6% surge in the past day. Bitcoin has also seen quite a surge in the past week, increasing by 11.4%. Although the asset has witnessed a decline of 0.4% in the past day, it is still maintaining its price below $60,000.
The latest data from CoinShares indicates a revival in the crypto market, with Ethereum standing out as a significant player in attracting investor interest. Despite some fluctuations, both Ethereum and Bitcoin continue to hold their ground above key price levels, showing resilience in the face of market volatility. As global participation in digital assets grows, the future looks promising for the crypto market as a whole.
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