Ethereum Products Lead Digital Asset Investment Inflows

Key Takeaways

• U.S. spot Ethereum ETFs command $23.38 billion in net assets, or 4.77% of ETH’s market cap.
• Ethereum’s price is up by over 20% in the past 7 days.
• U.S spot Bitcoin ETFs hold $150.7 billion in BTC, representing 6.48% of its market cap.

Bitcoin (BTC) and Ethereum (ETH) exchange-traded products (ETFs) and investment vehicles have returned to form after a brief break in net inflows as the crypto markets continue on a confident bullish trajectory.

Crypto Investments

After a difficult week for crypto products, investors appear to be returning with confidence as they draw $572 million in weekly total net inflows.

As per the latest CoinShares report , crypto products saw $1 billion in early-week outflows following “weak” U.S. payroll data. But this was quickly reversed by the $1.57 billion in net inflows.

Investors, namely U.S. ones, have been given to go-ahead to include digital assets in their 401(k) retirement plans, which the report notes may have driven some significant inflow action.

This has seen the U.S. lead the regional inflows again with $608 million, and is followed by Canada, which tallied $16.5 million in net inflows.

Outflows were felt by Germany, Sweden, and Switzerland for a combined $54.3 million.

Bitcoin products recovered from a two-week outflow streak with a sturdy $260 million in net inflows last week. Notably, BTC ETFs suffered more than $520 million before inflows returned, allowing funds to end the week with $246.75 million in weekly net inflows.

Ethereum products saw the highest inflows of any asset and drew in $268 million. This has seen year-to-date (YTD) inflows reach a new high of $8.2 billion.

As the CoinShares report notes, recent price gains have seen total assets under management reach an all-time high of $32.6 billion, an increase of 82% this year.

Ethereum ETFs

As per data from SoSoValue, U.S. spot Ethereum ETFs ended last week with $461.21 million in daily total net inflows.

After recording $152.26 million in outflows on August 1, and a further $465.05 million in exits on August 4, bullish investors worked to stem the red tide, which has yielded a weekly net total inflow of $326.83 million for EH funds.

Though funds briefly broke from their 20-day inflow streak, which drew billions and ultimately drove up ETH’s price significantly, they have maintained a thirteen-week inflow streak since mid-May.

This momentum has given ETH a huge price boost, driving it up by over 50% throughout July, and a further 20% in the past week, according to CoinMarketCap.