Summary: Ethereum and Solana See Net Inflows Despite Market Corrections
In the recent Digital Asset Fund Flows Weekly Report by CoinShares, Ethereum and Solana saw a combined influx of $176 million. This positive trend was seen across all regions, indicating widespread interest from investors globally. Surprisingly, Ethereum-based investment products attracted the most inflows during the week, deviating from the usual dominance of Bitcoin in the market.
Institutional Investors Pivoting Towards Ethereum And Solana
Despite market fluctuations, institutional investors continue to show confidence in digital assets. The market correction led to a drop in Assets under Management (AuM) from $95 billion to $75 billion, but consistent inflows have helped push it back up to $85 billion. Last week, trading volume for exchange-traded products surged to $19 billion, higher than the year’s $14 billion weekly average.
- Investor Behavior Highlights:
- Bitcoin attracted $13 million in inflows
- Ethereum-based products received $155 million, representing 88% of total inflows
- Solana attracted $4.5 million in inflows
- Short-Bitcoin ETPs saw their largest outflow since May 2023, with $16 million withdrawn
Strong Market Activity Across Regions
The market showed positive activity in all regions last week, with the US leading with $89 million in inflows. Notably, even regions like Switzerland, Brazil, and Canada saw significant inflows during the week.
What Lies Ahead for Crypto Markets?
The shift away from bearish strategies, observed through the outflows from Short-Bitcoin ETPs, aligns with the broader trend of renewed confidence in digital assets. With major cryptocurrencies starting to show gains in the past 24 hours, the market seems to be on the path to recovery.
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