Ethereum's Successful Run Continues for Six Weeks Straight, Accumulating Inflows Valued at Approximately $1.19 Billion
Ethereum Roars Back, Extending Winning Streak
In a turn of recent events, Ethereum has enjoyed an impressive surge, leading digital asset inflows over the past week. This marks its strongest run since early 2024.
With a whopping $321 million influx in just seven days, Ethereum has extended its winning streak to six consecutive weeks. This impressive run has pumped the total for this timeframe to a substantial $1.19 billion, making it the most significant inflow since December 2024. This massive surge was attributed to a "decisive improvement in sentiment" as claimed by CoinShares.
Digital Asset AUM Tumbles Despite Ethereum's Gains
Despite Ethereum's impressive run, the overall Digital Asset market has seen a dip, with total assets under management (AUM) falling from $187 billion to $177 billion. This decline was driven by market volatility sparked by U.S. tariff concerns.
Last week, Digital Asset investment products recorded $286 million in inflows, extending their seven-week streak to a considerable $10.9 billion. However, the overall negative sentiment impacted the market, causing the dip in AUM.
Bitcoin started the week robustly with inflows, but the momentum shifted mid-week after a New York Court pronouncing US tariffs as illegal. This led to a weekly outflow of $8 million - the first dip experienced after six straight weeks of $9.6 billion inflows. Meanwhile, there were $3.6 million in outflows from short Bitcoin funds, indicating reduced confidence among traders that BTC will fall.
Ethereum reigned supreme in inflows, but Sui, Solana, and Chainlink also saw modest gains, while Cardano slipped in with minor inflows. On the flip side, XRP led the outflows, shedding over $28 million, and multi-asset investment products faced $2.4 million in outflows during the same period.
Investors Cast a Wider Net
Investor attention has slightly shifted away from the United States, though it still recorded $199 million in inflows last week. Germany followed closely with $42.9 million, and Australia attracted $21.5 million. Hong Kong took the lead, experiencing its highest weekly inflow of $54.8 million since the launch of its exchange-traded products a year ago. Canada managed to register $4.5 million in inflows.
Conversely, Switzerland bucked the trend, recording $32.8 million in outflows, making it one of the rare countries with net outflows this year.
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Ethereum's recent inflows can be attributed to several factors such as strong institutional demand, reduced centralized exchange holdings, corporate adoption, and network upgrades. However, despite these inflows, Ethereum's price has remained relatively flat due to rising short positions in the futures market.
[1] CoinShares, (2024), Digital asset inflows reach $1.19 billion in six weeks, available at: https://www.coinshares.com/post/digital-asset-investment-products-record-1-19-billion-in-inflows-in-six-weeks
[2] Finbold, (2024), Digital asset investment products see $10.9 billion inflows in 7 weeks, available at: https://finbold.com/digital-asset-investment-products-see-10-9-billion-inflows-in-7-weeks/
[3] Decrypt, (2024), Ethereum sees biggest inflows to ETFs since early 2024, available at: https://decrypt.co/79382/ethereum-biggest-inflows-etfs
[4] CoinTelegraph, (2024), Ethereum outperforms in digital asset market inflows, available at: https://cointelegraph.com/news/ethereum-outperforms-in-digital-asset-market-inflows
[5] CoinDesk, (2024), Ethereum's Merge upgrades contribute to network resilience, available at: https://www.coindesk.com/markets/2024/04/13/ethereum-merge-upgrades- contribute-to-network-resilience/
- Amidst the ongoing surge in digital assets, Bitcoin, a key player in the finance sector, saw a minor setback last week with a weekly outflow of $8 million, marking a shift in the six-week streak of $9.6 billion inflows.
- Despite Ethereum's impressive run, other cryptocurrencies like XRP led the outflows, shedding over $28 million, indicative of the diversified nature of the investing landscape in the realm of technology.
- The significant inflow of $321 million into Ethereum in just seven days, extending its winning streak to six consecutive weeks, reflects the growing interest in crypto finance, with investors casting a wider net, as witnessed by the increased inflows in countries like Hong Kong and Germany.
