Ethereum Sees Largest Inflows Since August 2022
The institutional landscape in the crypto market seems to be shifting as Ethereum experiences a positive change. After struggling with continuous outflows throughout the year, Ethereum has attracted the largest inflows since August 2022, totaling $17.5 million, according to a report by CoinShares.
Positive Investments Continue for Digital Asset Products
Digital asset investment products have seen a turnaround with inflows totaling $261 million. This marks the sixth consecutive week of positive investments and surpasses the entire inflow amount recorded in 2022.
Bitcoin Remains Dominant, Spot-Based ETF Prospects Increase
Bitcoin remains the dominant attraction for investments, accumulating $229 million in inflows. CoinShares highlights that increasing prospects of a spot-based ETF in the United States play a key role in this trend.
Concerns and Apprehension in the Market
Weaker-than-anticipated macroeconomic data has raised concerns about the effectiveness of US monetary policy. During the same period, short positions in Bitcoin received inflows of $4.5 million, indicating apprehension among some investors regarding the sustainability of the latest rally.
Altcoins Show Positive Inflows
In addition to Ethereum, other altcoins have also seen inflows. Solana attracted $11 million, Chainlink received $2 million (representing 17% of total assets under management), and Polygon and Cardano recorded inflows of $0.8 million and $0.5 million respectively.
Leading Countries in Crypto Investments
The United States leads the charge with the largest inflow of $157 million. Germany, Switzerland, and Canada trail behind with inflows of $63 million, $36 million, and $9 million respectively.
Hot Take: Institutional Interest in Ethereum Grows
Ethereum’s recent surge in inflows indicates a growing institutional interest in the cryptocurrency. With positive investments continuing for digital asset products and the potential for a spot-based ETF in the United States, Ethereum’s popularity is on the rise. However, concerns about macroeconomic data and the sustainability of the market rally persist. Altcoins are also seeing positive inflows, with Solana and Chainlink gaining traction. As the crypto market evolves, it will be interesting to see how institutional investors shape its future.
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