Ethereum’s Battle Continues: Coinshares Reports Outflows Continue as Market Recovers


The latest money flow report from Coinshares, led by top market analyst James Butterfill, found a strong recovery in digital asset investments, totaling $436 million. The report highlighted bitcoin as the leader, while ethereum is still facing challenges with continued outflows.

While Bitcoin Recovers, Ethereum Faces Outflows

Coinshares’ analysis highlights a dramatic shift in the market, with inflows of $436 million reversing earlier outflows of $1.2 billion. Butterfill attributes the surge largely to a shift in market sentiment on expectations of a 50 basis point rate cut. The spark for the shift came from comments from former New York Federal Reserve President Bill Dudley.

Despite the positive momentum, exchange-traded fund (ETF) volumes remained flat at $8 billion, down significantly from the $14.2 billion average recorded at the start of the year. On the regional front, the United States accounted for the bulk of inflows with $416 million, followed by Switzerland and Germany, which contributed $27 million and $10.6 million, respectively. Canada, however, saw a small outflow of $18 million.

Bitcoin was the biggest winner here, recovering from a 10-day streak of outflows totaling $1.18 billion, Butterfill's report explains. Bitcoin shorts also saw outflows of $8.5 million after three consecutive weeks of inflows, signaling that sentiment toward bitcoin is improving. While bitcoin has seen a strong recovery, ethereum has not had the same luck.

Butterfill's findings document $19 million in outflows from ethereum, making it the only asset—besides short-bitcoin—to suffer losses in the current market. The report attributes ethereum's struggles to concerns about the profitability of layer-one (L1) protocols, spurred by discussions at the Decentralized Finance Conference (Decun).

Meanwhile, Solana found itself in a more favorable position, with four consecutive weeks of inflows totaling $3.8 million. Blockchain stocks also performed well, with $105 million in inflows following the launch of new ETFs in the United States. The latest trends in digital asset flows signal a shift in investor sentiment, showing growing optimism for bitcoin and caution for ethereum.

What do you think of Coinshares’ latest digital asset flows report? Please share your thoughts and opinions on the subject in the comments section below.

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