Crypto Inflows Surge as Investors Seize Market Dip Opportunities
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In a surprising turn of events, the crypto market has seen a significant uptick in crypto inflows, despite recent price volatility. According to the latest reports by CoinShares, digital asset investment products attracted a whopping $176 million in inflows last week, as savvy investors viewed the market correction as a prime buying opportunity.
The surge in crypto inflows comes on the heels of a market-wide price dip that initially wiped out over $20 billion from the total assets under management (AuM) of investment products. However, the swift influx of capital has helped the AuM recover to $85 billion, signaling strong investor confidence in the long-term potential of digital assets.
Crypto Inflows by Assets
Ethereum emerged as the star performer, raking in an impressive $155 million in inflows. This boost brings Ethereum’s year-to-date inflows to a staggering $862 million, marking its highest level since 2021. The launch of U.S. spot-based Ethereum ETFs has played a crucial role in driving this momentum.
Bitcoin, the market leader, also saw positive movement, ending the week with $13 million in inflows. Interestingly, Short Bitcoin ETPs experienced their largest outflows since May 2023, totaling $16 million. This exodus from short positions suggests a shift in investor sentiment towards a more bullish outlook on Bitcoin’s future performance.
Crypto ETFs Record Jump in Investment Inflows and Activities
In the realm of exchange-traded funds (ETFs), both spot Ethereum and Bitcoin ETFs saw notable activity. Spot Ethereum ETFs in the U.S. attracted $4.9 million in net inflows, while spot Bitcoin ETFs reported inflows of $27.8 million.
Grayscale’s Ethereum Trust (ETHE) broke its 14-day outflow streak, recording zero flows for the first time since its conversion to an ETF.
The surge in crypto inflows has had a positive impact on market prices. Bitcoin climbed 3.8% over a 24-hour period, trading around $60,040 at the time of this report, while Ethereum saw an impressive 6% gain, trading at $2,670.
This influx of capital into the crypto market comes at a time when traditional financial institutions are increasingly embracing digital assets. The recent launch of blockchain-powered ‘treasury tokens’ by Singapore’s largest bank, DBS, further exemplifies the growing integration of crypto technologies into mainstream finance.
As the crypto market continues to mature and attract institutional interest, these strong inflows serve as a testament to the resilience and long-term potential of digital assets.
