The latest data from crypto asset manager CoinShares indicates a notable resurgence in the crypto market. In its most recent ‘digital asset fund flows weekly report,’ CoinShares disclosed that the past week witnessed a significant boost in investor confidence, with digital asset investment products drawing in $176 million in inflows.
James Butterfill, CoinShares’ head of research, emphasized that this surge signals a strong, unanimous positive sentiment across the crypto community, particularly highlighting the performance of Ethereum-based funds. Delving into the report, Butterfill pointed out that Ethereum investment products have distinctly stood out, attracting $155 million of the total inflows, marking the highest year-to-date intake since 2021.
This influx underscores the market’s renewed interest in Ethereum, especially following the recent launch of spot Ethereum exchange-traded funds (ETFs) in the United States. According to Butterfill, the successful live trading of these funds has not only bolstered Ethereum’s standing in the global crypto market but has also significantly contributed to the increase in its market cap and investment product offerings.
On the Bitcoin front, despite initial outflows earlier in the week, Bitcoin managed to close the week with a positive total inflow of about $13 million. Additionally, the report noted that Short Bitcoin ETPs experienced their largest outflows since May 2023, amounting to $16 million, which reduced assets under management for short positions to their lowest levels since the beginning of the year. This suggests a substantial exit by investors from short positions.
CoinShares further disclosed that despite initial volatility, overall market sentiment remains overwhelmingly positive. The report emphasized that these inflows were not isolated incidents but part of a broader global positive reception to digital assets. Significantly, regions such as the United States, Switzerland, Brazil, and Canada have been key players, injecting substantial capital into the market. This widespread global participation points to a collective bullish outlook despite past significant declines.
In terms of market performance, both Bitcoin and Ethereum are battling to overcome bearish trends but still hold above critical price levels. Ethereum continues to trade above $2,500, with a current trading price of $2,689. This follows a notable weekly increase of more than 11% and a further 1.6% surge over the past day. Meanwhile, Bitcoin has observed a substantial weekly rise of 11.4%, although it experienced a slight decline of 0.4% in the past day, maintaining a price just under $60,000.
