Crypto Sees $176 Million Inflows as Investors Buy the Dip
Investors poured $176 million into crypto assets last week, seizing the opportunity to buy during a market dip, with Ethereum seeing the largest gains.
Crypto investments attracted $176 million in inflows last week following a recent market downturn. Investors saw the price drop as a chance to diversify and expand their portfolios, leading to significant new investments in digital assets.
The total Assets Under Management (AUM) for crypto products recovered to nearly $85 billion after falling to $75 billion due to the market correction. This rebound was driven by a sharp increase in the trading of exchange-traded products (ETPs), with last week's trading volume significantly surpassing the year's weekly average. All regions saw inflows, indicating a positive outlook on crypto assets after the correction. Ethereum benefitted significantly, with inflows boosting its year-to-date total, aided by the introduction of spot Ethereum ETFs.
Several regions showed notable inflows, reflecting global interest in crypto investments. The United States led with substantial inflows, followed by Switzerland, Brazil, and Canada. Despite these inflows, the U.S. experienced significant net outflows month-to-date, highlighting mixed market sentiment. Ethereum's strong inflows suggest it remains a favored asset amid volatility, with substantial inflows last week contributing to its overall growth this year.
At the start of the month, Ethereum ETFs saw positive net inflows, driven by significant investments in BlackRock’s iShares Ethereum Trust. In contrast, the Grayscale Ethereum Trust experienced large outflows. Despite this, the increasing inflows into Ethereum indicate growing investor confidence.
Bitcoin ETFs faced fluctuations, starting the week with outflows, including a significant net outflow on Tuesday. The Grayscale Bitcoin Trust reported the highest daily outflow, followed by outflows from Ark Invest and 21Shares, and Fidelity’s Bitcoin ETF. However, BlackRock’s IBIT and other funds remained stable, suggesting investors are holding their positions. Towards the end of the week, Bitcoin ETFs saw a positive shift, with substantial net inflows, driven by a recovery in Bitcoin’s price. Despite recent price fluctuations, Bitcoin remains a focus for investors.
The recent market correction created opportunities for crypto investors, resulting in significant inflows into digital asset products. Ethereum emerged as a major beneficiary, thanks to spot Ethereum ETFs. Bitcoin ETFs demonstrated resilience, recovering from initial outflows to end the week on a positive note. The substantial investments amid volatility highlight strong investor confidence, with regional inflows in the U.S., Switzerland, Brazil, and Canada emphasizing the global appeal of digital assets. These trends showcase the dynamic nature of crypto investments and their worldwide opportunities.
