Ethereum emerged as the top investors’ choice in the digital asset fund flows report published by the asset management company, CoinShares. The report highlighted that investment products in the digital asset space received inflows worth $176 million after the recent market meltdown.
According to CoinShares, investors capitalized on the recent market correction, viewing it as an opportunity for discounted market prices. This wave of investments came after a period of correction where about $20 billion worth of liquidations caused panic in the crypto market. During the correction, assets under management in the entire industry declined to $75 billion as institutional investors cashed out.
The market has since shown signs of making a comeback. The CoinShares report reveals that trading activities of exchange-traded products in the digital asset landscape have exceeded normal levels of $14 billion weekly average this year, settling at $19 billion for the week.
📈 Inflows rebound amid market correction! Digital asset investment products saw inflows totalling US$176m: #Ethereum has benefited the most from the recent market correction, with inflows of US$155m last week.
For more insights, read our full report: https://t.co/zmIGby5elC pic.twitter.com/CsDMUIpj4x
— CoinShares (@CoinSharesCo) August 12, 2024
iShares ETFs led the spot ETF pack and received the most weekly inflows, which was about $408 million. The new inflows bring its month-to-date inflows to $566 million. iShares ETFs also recorded positive year-to-date inflows worth $21.2 billion.
21Shares AG, CoinShares XBT, and Purpose Investments Inc. also recorded net positive inflows during the week and positive month-to-date inflows.
Ethereum gained the most favor from investors, attracting the lion’s share of $155.4 million in inflows. The recent inflows have increased Ethereum’s total inflows to $862 million from year to date, which is the highest figure since 2021. Ethereum’s remarkable inflow levels have largely been credited to spot ETF approval by the United States Securities and Exchange Commission (SEC).
Bitcoin’s performance lagged behind Ethereum’s. According to the asset management firm’s report, Bitcoin experienced significant outflows at the beginning of the week, with short Bitcoin exchange-traded products recording the largest outflows since May 2023.
Solana ranked below Ethereum and Bitcoin, with the weekly inflows settling at $4.5 million. Solana’s month-to-date inflows also settled at $4.5 million, bringing its year-to-date inflows to $70 million. Binance Coin recorded outflows worth $1.2 million during the week.
The US and Switzerland lead inflows
All the regions covered in the report recorded inflows in the same week as the market recovered. The unanimous inflow suggests an overall bullish sentiment in the entire crypto market. The US, Brazil, Switzerland, and Canada, appeared prominently in the report, with each country recording inflows worth $89 million, $19.9 million, $21.3 million, and $19.2 million, respectively.
CoinShares’ report indicates that the United States is the only country to record month-to-date net outflows, which sat at $306 million when the asset management firm published the flow report. However, the report also highlights that the United States has the highest valuation for digital assets under management, currently at $64 billion.
