Ethereum (ETH) has made a remarkable comeback, reversing a five-week decline with a significant inflow of $87 million into ETH-based investment products last week. According to the latest report from CoinShares, this marks the first measurable inflow since early August and aligns with a broader resurgence in digital asset investments.
The latest European asset manager weekly report highlights a wave of optimism in the crypto space, with digital asset investment products experiencing inflows for three consecutive weeks, totaling $1.2 billion. This surge is fueled by expectations of a dovish monetary policy from the U.S. Federal Reserve, which has positively impacted price momentum across various cryptocurrencies.
Positive Sentiment Boosts Assets Under Management
The total assets under management (AuM) across digital asset products saw a notable increase of 6.2% in the past week, driven by renewed interest from investors. The approval of options for certain U.S.-based investment products has further bolstered market sentiment, attracting new capital into the cryptocurrency space.
Despite these positive trends, trading volumes did not reflect the same growth, experiencing a slight decline of 3.1% week-on-week. This discrepancy suggests that while investors are optimistic about the future, actual trading activity remains subdued.
Bitcoin Dominates, While Altcoins Show Mixed Results
Bitcoin (BTC) led the charge with a staggering $1 billion in weekly inflows, a strong indicator of investor confidence. Interestingly, this bullish sentiment also led to $8.8 million flowing into short-BTC investment products, indicating that some traders are hedging against potential market corrections.
In contrast, Solana (SOL) experienced a setback, with outflows amounting to $4.8 million. The sentiment among altcoins appeared divided, with Litecoin (LTC) and XRP receiving modest inflows of $2 million and $0.8 million, respectively. Chainlink (LINK) and Cardano (ADA) also saw minor inflows of $0.4 million and $0.1 million. However, Binance Coin (BNB) faced outflows of $1.2 million, reflecting the varying sentiments across the altcoin market.
Regionally, the sentiment toward digital assets is mixed. The U.S. attracted a remarkable $1.2 billion in inflows, while Switzerland recorded $84 million, its highest inflow since mid-2022. Canada and Australia saw minor inflows of $1 million and $0.6 million, respectively.
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Conversely, Germany and Brazil reported outflows of $21 million and $3 million, indicating caution among investors in those regions. Sweden and Hong Kong also followed suit, reporting outflows of $2.5 million and $1 million, respectively.
A Promising Outlook for Ethereum
Ethereum’s recent inflow surge signals a potential turnaround for the second-largest cryptocurrency by market capitalization. With increasing interest from investors and favorable macroeconomic conditions, ETH could be poised for further growth. As market sentiment continues to evolve, it remains essential for investors to keep a close eye on trading volumes and regulatory developments that could impact the broader crypto landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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