Recent data from CoinShares has revealed a significant uptick in investor confidence in the crypto market. The digital asset fund flows weekly report by the asset manager showed that there were $176 million in inflows into digital asset investment products last week. James Butterfill, the head of research at CoinShares, mentioned that this surge in inflow indicates a strong positive sentiment across the board, with a specific focus on Ethereum-based funds.
Delving deeper into the report, it was highlighted that Ethereum products have distinctly stood out, attracting $155 million of the total inflows. This marks the highest year-to-date intake since 2021. The introduction of spot Ethereum exchange-traded funds (ETFs) in the United States has played a significant role in renewing interest in Ethereum. The successful live trading of these funds has not only bolstered Ethereum’s position in the global crypto market but also contributed to the overall increase in its market cap and investment product offerings.
While Bitcoin experienced some outflows earlier in the week, it is expected to end the week with a positive total inflow of approximately $13 million. On the contrary, Short Bitcoin ETPs saw their largest outflows since May 2023, totaling $16 million, reducing AuM for short positions to its lowest level since the beginning of the year. This significant investor exit indicates a shift in sentiment towards Bitcoin.
Despite initial volatility, the overall market sentiment has been overwhelmingly positive. The inflows reported are not isolated incidents but rather part of a broader, global positive reception to digital assets. Regions such as the United States, Switzerland, Brazil, and Canada have emerged as front runners, injecting substantial capital into the market. This global participation in inflows signifies a collective bullish outlook in the face of previous major dips.
Ethereum continues to trade above $2,500, with a current price of $2,689. The asset has witnessed an increase of more than 11% in the past week and a 1.6% surge in the past day, demonstrating continued bullishness. On the other hand, Bitcoin has also experienced a surge of 11.4% in the past week, maintaining a price below $60,000 despite a 0.4% decline in the past day.
The recent data from CoinShares paints a picture of a resurgence in the crypto market, with investor confidence on the rise and a notable interest in Ethereum products. While Bitcoin faces some challenges with outflows in Short Bitcoin ETPs, the overall sentiment remains positive. The collective bullish outlook and global participation in inflows suggest that the crypto market is poised for further growth in the coming weeks.
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