Crypto Investment Products See $224M Inflows Led by Ethereum Amid Bitcoin Outflows

Digital asset investment products continue strong inflows, with Ethereum leading, while Bitcoin and other altcoins see moderate outflows.

According to data from CoinShares, last week, digital asset investment products saw $224 million in inflows, extending a seven-week streak of positive growth. 

This brings the total inflows over the past seven weeks to $11 billion. However, the pace of inflows has started to decelerate, reflecting growing uncertainty over U.S. monetary policy. 

Investors appear to be adopting a cautious, wait-and-see approach, particularly as the U.S. Federal Reserve’s signals on inflation remain unclear.

Ethereum’s Dominance and Bitcoin’s Decline

Interestingly, Ethereum continued its impressive performance, leading the pack with $296.4 million in inflows. This marks the seventh straight week of inflows for Ethereum, bringing the total within this period to $1.5 billion, or 10.5% of total AUM. 

The surge in Ethereum’s inflows represents the strongest inflows since last November’s U.S. election. In contrast, Bitcoin faced a second straight week of modest outflows, amounting to $56.5 million. This decline in Bitcoin investment products, combined with outflows from short-bitcoin products, shows a shift in sentiment amid ongoing policy uncertainty.

Altcoins and Multi-Asset Products

Also, the altcoin market has remained relatively subdued, with minor inflows observed in Sui, which attracted $1.1 million. On the other hand, XRP experienced its third consecutive week of outflows, totaling $6.6 million. 

Interestingly, XRP has maintained stronger year-to-date flows, which total $194 million, indicating consistent investor interest despite recent outflows. Meanwhile, multi-asset products saw $6.6 million in outflows for the week, with a year-to-date decline of $142 million. This suggests that investors are increasingly favoring single-asset investments, particularly in Bitcoin and Ethereum, over diversified portfolios.

Despite these market fluctuations, iShares ETFs experienced the highest inflows of any provider, with $330 million entering their products last week. This consistent growth in iShares’ inflows contrasts with the outflows seen from other providers like Grayscale Investments and Fidelity Wise Origin Bitcoin, which saw reductions of $16 million and $168 million, respectively.

Regional Breakdown of Investment Flows

The regional breakdown of inflows showed that the U.S. led the pack with $175 million, followed by Germany at $47.8 million. Switzerland, Canada, and Australia also saw significant investments, with $15.7 million, $9.8 million, and $6.5 million, in inflows respectively. 

However, the trend wasn’t universally positive. Brazil saw outflows of $9.2 million, and Hong Kong experienced outflows of $14.6 million, signaling a slowdown in their previously strong inflow activity. Notably, Hong Kong’s outflows mark the end of record-breaking inflows in the region.