Ethereum lifts crypto products to sixth consecutive week of inflows
Digital asset investment products managed to take out inflows of $3 million in the past week.
Nonetheless, this marks a sixth consecutive week of inflows, which now stand at $529 million, representing 1.7% of total assets under management (AuM), according to the latest CoinShares report. It highlighted the launch of 32 new investment products, primarily in altcoins, despite the fall in cryptocurrency prices over the past quarter. This nearly ties the record of 33 products launched during the peak of Q4 2021.
The majority of outflows were seen in Canada, amounting to just $30 million. In America, this was countered by the USA with an inflow of 16.6 million dollars, while Germany, Switzerland and Sweden each had inflows of 7.8 million dollars, 3.6 million dollars and 3 million dollars respectively in Europe.
Coin flows
Bitcoin-based investment products saw outflows in the past week, with outflows of $8.5 million, in addition to short-bitcoin investment products seeing a record outflow of $7.5 million. While the two indicators provide mixed signals, the second straight week of short product outflows suggests “investors believe bitcoin prices have fallen,” the report said.
Meanwhile, Ethereum-based products saw the vast majority of inflows at $16 million. This extends their streak of inflows to seven weeks, now totaling $159 million. According to the report, “this turnaround in investor sentiment is due to greater clarity about the timing of The Merge”, where the protocol will shift from proof-of-work to proof-of-stake. While altcoins Solana, Cardano and XRP also saw inflows, at $600,000, $200,000 and $200,000 respectively, they were relatively insignificant.
Although investor sentiment has improved, with the largest inflows in July so far this year, trading volume remains low at $1.1 billion. This is less than half the year-to-date weekly average of $2.4 billion. The report acknowledged that this low level of participation is seasonal as similar trends have been observed in previous years.
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