Amid global market volatility, Ethereum has bucked the trend and become a hot commodity in the eyes of investors. The latest data shows that Ethereum has attracted $155 million in inflows in the past week, pushing its total annual inflows to $862 million, a new high since 2021.
The growth was helped by the launch of a new spot ETF in the United States, further consolidating Ethereum’s position as a leader in the cryptocurrency market.
Strong rebound in capital inflows
The sentiment in the cryptocurrency market is improving, and most assets except Ethereum are showing positive signs of capital inflows. After experiencing capital outflows at the beginning of the week, Bitcoin ushered in a strong return over the weekend, with a total inflow of $13 million for the week.
Meanwhile, short Bitcoin ETPs experienced their largest outflows since May 2023, totaling $16 million (23% of assets under management), which brought the assets under management of short positions to the lowest level since the beginning of the year, indicating a large number of investors exiting.
CoinShares’ digital asset fund weekly report reveals broad trends in inflows, with Solana, XRP, and Cardano-related investment products attracting $4.5 million, $700,000, and $600,000 in inflows, respectively, demonstrating continued market interest in these assets.
From an overall analysis, digital asset investment products saw a total inflow of US$176 million in one week as investors viewed short-term price declines as good entry opportunities. Although total assets under management for these products fell to $7.5 million at one point, the significant recovery this week shows a return to market confidence and a significant increase in market activity.
Global investor confidence improves
According to the latest data from CoinShares, the inflow of funds into cryptocurrencies in various regions around the world showed an unusually positive trend, reflecting that investors remain optimistic about the asset class after the market has experienced price adjustments. The United States, Switzerland, Brazil and Canada have become the main sources of inflows, recording inflows of $89 million, $21.3 million, $19.9 million and $19.2 million respectively.
Meanwhile, Germany, Australia, and Sweden also reported significant inflows of $12.6 million, $5.9 million, and $5.1 million respectively, demonstrating the strong interest in crypto assets in these countries.
Although the United States saw a net outflow of $306 million this month, a phenomenon that may be related to market strategy adjustments or other macroeconomic factors, overall, the trend of global capital inflows indicates that investors are positive about the long-term prospects of the cryptocurrency market.
Conclusion:
Ethereum has shown strong capital attraction during the market downturn, with capital inflows reaching $155 million in one week, becoming a key force driving market recovery. The launch of the US spot ETF has injected new vitality into Ethereum, and global investors continue to be optimistic about Ethereum's long-term value and technological innovation.
Despite the net outflow in the United States, the positive trend of global capital inflows shows that investors have undiminished confidence in the cryptocurrency market. Ethereum's leadership and the optimism in the global market indicate that the cryptocurrency market is heading for a new round of growth, bringing new development opportunities to investors.
