- Ethereum investment product inflows hit their highest level since August 2022 last week, likely fueled by anticipation of a potential US Ethereum ETF approval.
- Overall digital asset funds saw $293 million in inflows last week, marking the seventh consecutive week of inflows. Bitcoin products attracted $240 million.
- Blockchain equity ETFs saw their highest inflows since July 2022 at $14 million, now turning positive for the year after outflows in 2022.
Ethereum has seen a major turnaround in investor sentiment in recent weeks. Inflows into Ethereum investment products hit their highest level since August 2022 last week, according to digital asset manager CoinShares.
What’s Behind the Surge in Inflows
The spike in inflows comes as investors anticipate the potential approval of a physically-backed Ethereum exchange-traded fund (ETF) in the US.
“Ethereum saw its largest inflows since August 2022 of US$49m, with the last 2 weeks signifying a real turnaround in sentiment, likely related to the recent spot-based ETF listing request,” said James Butterfill, Head of Research at CoinShares.
The asset manager said the flows indicate a distinct turnaround in investor sentiment, likely fueled by BlackRock’s move to file for an Ethereum spot ETF last week.
Wider Digital Asset Market Trends
Overall digital asset funds saw $293 million in inflows last week across crypto products, marking the seventh consecutive week of inflows.
Bitcoin products attracted $240 million, bringing their year-to-date inflows to over $1 billion. Exchange-traded product (ETP) trading volumes have also increased, making up nearly 20% of total Bitcoin volumes on trusted exchanges. This suggests more ETP investor participation compared to the 2020 and 2021 rallies.
The streak of inflows has pushed total assets under management in crypto investment products to $443 billion, a 99% increase since the start of 2023.
Blockchain equity ETFs also saw their highest inflows since July 2022 at $14 million. Their year-to-date flows have now turned positive at $11 million after substantial outflows for most of 2022.
ETH is up 17% over the past 24 hours, according to CoinGecko.