Monday, May 27, 2024
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Ethereum Attracts $17.5M in Largest Inflows Since August 2022: CoinShares

You won’t believe the recent turn of events in the institutional investment landscape! Ethereum, which had been facing consistent outflows throughout the year, has suddenly experienced a positive shift. According to the latest report by CoinShares, Ethereum attracted the largest inflows since August 2022, totaling a whopping $17.5 million. But it doesn’t end there. Digital asset investment products saw a streak of positive investments, accumulating a total of $261 million in inflows. This marks the sixth consecutive week of such investments, surpassing the entire inflow amount recorded in 2022. The dominance of Bitcoin in attracting investments remained strong, with $229 million in inflows contributing to year-to-date inflows totaling $842 million. So what contributed to this sudden surge? CoinShares highlights increasing prospects of a spot-based ETF in the United States and concerns raised by weaker-than-anticipated macroeconomic data as key factors. Moreover, Ethereum was not the only altcoin to shine, with Solana attracting $11 million in inflows. It seems that the institutional investment landscape is experiencing quite the shake-up, and Ethereum is at the center of it all. To find out more, check out the full article on CryptoPotato.

Institutional Shift in Ethereum

The recent institutional landscape appears to be undergoing a shift, as Ethereum, which had been struggling with continuous outflows throughout the year, notably totaling $107 million, suddenly experienced a positive change. According to the latest report by CoinShares, Ethereum has attracted the largest inflows since August 2022, totaling $17.5 million.

Digital Asset Investment Products

In the latest turnaround, digital asset investment products saw inflows totaling $261 million, marking the sixth consecutive week of positive investments. This streak raked in $767 million in inflows, surpassing the entire inflow amount of $736 million recorded in 2022. The digital asset manager revealed that the run of inflows now resembles the July 2023 run of inflows and is the largest since the end of the bull market in December 2021.

Ethereum and Bitcoin Inflows

While Ethereum’s struggles with continuous outflows have been evident throughout the year, the recent shift in the institutional landscape has resulted in impressive inflows of $17.5 million. This is a significant turnaround for Ethereum and showcases its potential to attract institutional investors.

Bitcoin, on the other hand, remained the dominant attraction for investments, accumulating a significant $229 million in inflows. The cryptocurrency has been a popular choice for institutional investors, and its year-to-date inflows currently amount to $842 million. Despite the increased attention on Ethereum, Bitcoin continues to hold its position as a reliable investment option.

Prospects of Spot-based ETF

CoinShares highlighted the increasing prospects of a spot-based ETF in the United States. The introduction of a spot-based ETF could have a significant impact on the cryptocurrency market, providing more accessible and regulated investment options for investors. This development further emphasizes the growing importance of cryptocurrency in the mainstream financial sector.

Concerns about US Monetary Policy

Weaker-than-anticipated macroeconomic data has raised questions about the effectiveness of US monetary policy. As investors closely monitor the performance of the economy, uncertainties and concerns about monetary policy can have a profound impact on investment decisions. The current economic landscape and discussions surrounding US monetary policy add an element of apprehension to the market.

Apprehension Among Some Bitcoin Investors

Short positions in Bitcoin received inflows of $4.5 million during the same period, underscoring the apprehension among some investors regarding the sustainability of the latest rally. While Bitcoin has been performing well and attracting significant investments, there is a cautious sentiment among some investors who question whether the current rally is sustainable in the long term.

Altcoins with Inflows

Apart from Ethereum and Bitcoin, several altcoins also saw significant inflows. Solana, in particular, attracted $11 million in inflows, showcasing its growing popularity among investors. Other altcoins such as Chainlink, Polygon, and Cardano also recorded inflows, further diversifying the cryptocurrency investment landscape. These inflows indicate that investors are not solely focused on Bitcoin and Ethereum but are also exploring other promising cryptocurrencies.

Notable Participants in Inflows

The United States has emerged as a notable participant, leading the charge with the largest inflow of $157 million. This reflects the growing interest and involvement of US-based institutional investors in the cryptocurrency market. Germany, Switzerland, and Canada also contributed to the inflows, with significant amounts of $63 million, $36 million, and $9 million, respectively. The global participation in cryptocurrency investments demonstrates the widespread appeal and potential of digital assets.


The recent institutional shift in Ethereum, with its largest inflows since August 2022, signifies a significant turning point for the cryptocurrency. Alongside Bitcoin’s continued dominance, the inflows in altcoins and digital asset investment products portray a growing interest in cryptocurrencies among institutional investors. The prospects of a spot-based ETF in the United States and concerns about US monetary policy further shape the cryptocurrency market’s trajectory. As the cryptocurrency landscape continues to evolve, it is essential to monitor these developments and their potential impact on investments and the wider financial sector.