Ethereum Leads Market Recovery with $155M Inflows Amid Recent Downturn

Ethereum has emerged as the frontrunner in the market recovery, with investors seizing the opportunity to buy in during the recent downturn. Inflows into Ethereum reached $155 million over the past week, bringing its year-to-date total to $862 million, the highest since 2021. The introduction of US spot-based ETFs played a significant role in fueling this influx of funds. This positive sentiment extended to other cryptocurrencies as well, with Bitcoin experiencing increased inflows towards the end of the week. However, short Bitcoin ETPs saw their largest outflows since May 2023, indicating a significant investor exit. Solana, XRP, and Cardano also saw weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively. Digital asset investment products collectively saw $176 million in inflows, as investors took advantage of the price declines. CoinShares estimates that the total assets under management for these products rebounded from $75 billion to $85 billion. Moreover, trading volume in ETPs surged to $19 billion for the week, surpassing the weekly average for this year. Remarkably, there were inflows from every region last week, reflecting global optimism towards the asset class after the recent dip. The US, Switzerland, Brazil, and Canada saw the most significant inflows, while Germany, Australia, and Sweden also received notable amounts. Surprisingly, the US remained the only country with net outflows for the month, amounting to $306 million.