Ethereum sees $34M weekly inflows, ETFs driving demand?
Last week saw a considerable influx of $185 million into cryptocurrency investment vehicles, continuing a streak of increased investment for the fourth week straight, as detailed in a recent analysis by the cryptocurrency investment company CoinShares.
Despite this figure representing an 82% decrease from the $1.05 billion in inflows reported in the week prior, it contributed to lifting the total inflows for May to $2 billion. Furthermore, this surge has propelled the inflows for the year so far, pushing them past the $15 billion threshold.
The report from CoinShares also highlighted a dip in trading volumes during the observed week. The figures fell to $8 billion, down 38% from the $13 billion noted the week before.
By week's end, CoinShares noted that the collective assets under management (AUM) for cryptocurrency investment products had surpassed $97 billion, a slight decrease of 1.3% from the $98.43 billion recorded the previous week.
The report also shed light on the geographical distribution of last week’s investment flows into crypto funds, with the largest portion originating from the U.S. CoinShares stated:
“The bulk of inflows emanated from the US, tallying a net of US$130m, despite a rise in outflows from stalwart ETF issuers which climbed to US$260m. Switzerland witnessed its second-highest influx this year at US$36m, while Canada experienced a positive shift with inflows of US$25m, despite a cumulative outflow of US$39m for May.”
Ethereum Wins Favor
Following the U.S Securities and Exchange Commission (SEC)'s green light on 22nd May for the inaugural batch of spot Ethereum [ETH] exchange-traded funds (ETFs) applications from firms including Grayscale, Bitwise, iShares, VanEck, Ark Invest, Invesco, Fidelity, and Franklin Templeton, Ethereum-centric products have enjoyed substantial inflows.
The success continued into the week under examination, as per CoinShares' investigation, with Ethereum-focused products witnessing their second consecutive week of inflows totaling $34 million.
These inflows accounted for 18% of the overall inflows during the same timeframe, further propelling the YTD inflows into Ethereum to $11 million.
CoinShares remarked:
“This signals a significant shift in investor interest for an asset that had experienced a continuous 10-week period of outflows previously, amounting to US$200m.”
Additionally, CoinShares pointed out that the positive developments surrounding Ethereum had a favorable impact on Solana [SOL], evidenced by an additional inflow of US$5.8 million into Solana last week, attributed to their statistically significant positive correlation.
