Sustained Inflows into Crypto Funds Bolstered by Ethereum’s Resurgence, Reports CoinShares

Summary

• Cryptocurrency investment products saw their fifth consecutive week of net inflows, adding $785 million, bringing year-to-date inflows to $7.5 billion and fully recovering from earlier market slumps, according to CoinShares.

• Ethereum-based funds were a “standout performer,” attracting $205 million in inflows last week, attributed to positive sentiment following its Pectra upgrade and new leadership, though U.S. spot Ethereum ETF inflows were comparatively modest.

• While Bitcoin funds still dominated with $557 million in inflows, this was a decrease from the previous week, possibly due to hawkish Federal Reserve signals; short-bitcoin products also saw continued inflows.

• Geographically, the U.S., Germany, and Hong Kong led in attracting net inflows, with Hong Kong seeing its largest inflow since November 2024, while Solana-based products were the only notable category to experience net outflows.

For the fifth consecutive week, investment vehicles focused on cryptocurrencies have attracted substantial net inflows, totaling an additional $785 million, with Ethereum emerging as a key contributor to this trend, according to asset management firm CoinShares.

The cumulative inflows for the year to date have now climbed to $7.5 billion, effectively reversing the outflows experienced between February and March, which coincided with a market downturn attributed to concerns over Trump-era tariffs.

Consistent Gains and Recovery from Previous Outflows

Globally, crypto investment products managed by prominent firms such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares collectively registered these net inflows last week, a phenomenon supported by a notable recovery in sentiment towards Ethereum.

This consistent positive trend over five weeks has brought year-to-date inflows to a new peak, surpassing the $7.2 billion recorded in early February, as detailed in a Monday report by James Butterfill, Head of Research at CoinShares.

Butterfill also noted, “It also fully recovers the near $7 billion of outflows experienced during the February-March price correction.”

During a week where Bitcoin’s price fluctuated between $102,000 and $105,000, Ethereum experienced a decline of approximately 3%, and the GMCI 30 index (representing leading cryptocurrencies) fell by 6%, the total assets under management (AUM) within these funds reached $172.9 billion.

This AUM figure is also approaching record levels.

Ethereum’s Notable Performance and Catalysts

While investment products linked to Bitcoin continued to attract the largest share of net inflows last week, amounting to $557 million, Butterfill highlighted Ethereum-focused investment products as the “standout performer.”

These products garnered an additional $205 million, bringing their year-to-date total to $575 million, reflecting a sustained improvement in investor sentiment towards the second-largest cryptocurrency.

Butterfill attributed the inflows into Ethereum to renewed investor optimism following the successful implementation of its Pectra upgrade and the appointment of Tomasz Stańczak as its new co-executive director.

Regional Variations in Ethereum ETF Interest and Bitcoin Fund Flows

However, it is noteworthy that U.S.-based spot Ethereum exchange-traded funds (ETFs) accounted for only $41.8 million of this total, as per data compiled by The Block, indicating varied sentiment across different geographical regions.

The net inflows into Bitcoin funds represented a decrease from the $887 million recorded in the prior week.

Butterfill suggested this moderation was likely influenced by persistent hawkish signals from the U.S. Federal Reserve.

Concurrently, investment products designed to short Bitcoin saw inflows for the fourth week in a row, totaling $5.8 million, which Butterfill interpreted as investors positioning themselves amidst recent price increases.

Geographical Breakdown of Inflows and Outflows

Regionally, the United States, Germany, and Hong Kong markets were the primary recipients of overall net inflows, attracting $681 million, $86.3 million, and $24.2 million, respectively.

Butterfill pointed out that Hong Kong’s inflow was its largest since November 2024.

Conversely, digital asset investment products in Sweden, Canada, and Brazil experienced net outflows amounting to $16.3 million, $13.5 million, and $3.9 million, respectively.

Solana is an Outlier with Minor Outflows

Meanwhile, investment products centered on Solana were unique in experiencing net outflows last week, although the amount was modest at $0.9 million.

Also Read: Ethereum Looking Ready To Break Out From 4-Year Consolidation, Analyst Says Price Will “Go Insane”

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