Record Inflows Push Ethereum to Highest Point in Over a Year
Last week, digital investment products experienced their sixth consecutive week of inflows, with Ethereum seeing its highest point in over a year. In addition, the price of Ethereum has increased by 5.72% in the past seven days, indicating a predominantly bullish sentiment for the smart contract platform.
These inflows into digital asset investment products have been occurring since September and throughout October, reflecting the overall bullish sentiment in the broader crypto market.
Ethereum Sees Largest Inflow of Institutional Funds Since August 2022
After months of lackluster interest and continuous outflows from institutional investors, Ethereum is once again gaining their confidence. According to CoinShares’ latest weekly report, digital asset investment products received $261 million in inflows last week, bringing the total for six consecutive weeks to $767 million.
While Bitcoin has dominated headlines and attracted substantial institutional investments, Ethereum also witnessed significant inflows, surpassing other altcoins. Last week alone, Ethereum’s inflow reached $17.5 million, marking its largest influx of institutional funds since August 2022. Although its year-to-date net flow remains negative at $107 million, Ethereum’s month-to-date net flow has turned positive at $13.6 million.
Similar Sentiment Among Altcoins
In addition to Ethereum, other altcoins like Solana, XRP, and Cardano also experienced inflows last week. Solana received $11 million in inflows, while Chainlink, XRP, and Cardano saw $2 million, $0.2 million, and $0.5 million respectively. This influx of money suggests that institutional investors may be willing to reinvest in altcoins as the entire crypto market looks to ignite a strong bullish run.
Geographically, the majority of investments came from the US, as investors anticipate the SEC’s approval of spot Bitcoin ETFs to trigger the next sustained bull run. Throughout the week, US investors poured $157 million into digital asset investment products. Germany, Switzerland, and Canada followed with respective inflows of $63 million, $36 million, and $9 million.
Record Inflows Surpass Total for 2022
CoinShares reports that the recent inflows have exceeded the total inflows of $736 million in 2022. This marks the largest inflow since the end of the bull market in December 2021, matching the six consecutive inflows seen in July 2023.
Ethereum’s Price and Outlook
Ethereum is gradually approaching $2,000 and has formed a minor support level around $1,870. At the time of writing, ETH is trading at $1,894.
Hot Take: Ethereum Reaps Benefits from Institutional Inflows
Last week’s record-breaking inflows into digital investment products have propelled Ethereum to its highest point in over a year. The influx of institutional funds demonstrates renewed confidence in Ethereum as a smart contract platform. Alongside Bitcoin’s dominance, Ethereum has emerged as a top choice for institutional investors, surpassing other altcoins in terms of inflows. This surge in institutional interest suggests a potential revival for altcoins and indicates a bullish sentiment across the entire crypto market. With Ethereum steadily approaching $2,000 and forming a support level, it remains to be seen how the market will evolve in response to these inflows. Overall, Ethereum’s performance highlights its resilience and attractiveness as an investment option.
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