Ethereum ETF launch sends inflows to record $20.5 billion
Last week marked the debut of spot Ethereum exchange-traded funds (ETFs) on the U.S. market scene, drawing a notable $2.2 billion in capital infusions. However, these fresh offerings encountered competitive sell-offs from existing products. According to CoinShares, a prominent asset management company, the launch period for these ETFs witnessed some of the most significant capital injections since December 2020, with Ethereum Exchange Traded Products (ETP) trading volumes skyrocketing by 542%.
Despite the initial enthusiasm, Grayscale's established trust saw significant capital withdrawals amounting to $1.5 billion as investors chose to liquidate some of their holdings. This led to a net outflow of $285 million from Ethereum-oriented products in the last week, echoing a similar pattern observed with Bitcoin trust withdrawals during the ETF introductions in January 2024.
In a broader perspective, digital asset investment vehicles collectively garnered $245 million in new investments, with the trading volumes climbing to a peak of $14.8 billion since May. Consequently, the total managed assets surged to $99.1 billion, with the inflows for the current year breaking new grounds at $20.5 billion.
Continuing to capture the interest of investors, Bitcoin amassed $519 million in fresh inflows last week alone. This contribution elevated its total for the current month to $3.6 billion and the year's accumulative contributions to an unprecedented $19 billion.
The investment community's growing optimism towards Bitcoin can be attributed to recent discussions surrounding the U.S. elections, mentioning its potential role as a strategic reserve asset, along with anticipations of a Federal Reserve interest rate reduction in September 2024.
On a regional scale, the United States led with $272 million in inflows for the past week, with Switzerland tagging along with $40.6 million, Canada contributing $2.5 million, and Australia adding $1.7 million. In contrast, Germany and Brazil experienced capital withdrawals, tallying up to $59.6 million and $5.6 million, respectively.
