Investors Crawl Back to Ethereum Funds as Bitcoin Outflows Rise

Digital-asset funds have attracted capital over the past two weeks, albeit at a slower pace as investors remain cautious after the crypto crash in May. It appears that investors are warming up to Ethereum (ETH) products, which saw a third consecutive week of inflows totaling $11.7 million, according to a report by CoinShares.

Overall, net inflows to digital asset funds totaled $2.9 million for the week ending July 9, down from $4 million during the previous week. Fund flows have weakened following a period of strong investor demand during bitcoin’s rally in Q4 2020.

  • Minor outflows were seen in bitcoin investment products totaling $7 million last week, which coincided with slowing trading volumes, according to CoinShares.
  • “In recent weeks there has been a regional divide in bitcoin (BTC) inflows, with North American providers seeing consistent inflows while their European counterparts have continued to see outflows, suggesting a geographic divergence in sentiment is present.”
  • Multi-asset investment products were the most popular last week with inflows totaling $1.2 million, and now represent 16.5% of total assets under management, according to CoinShares.
  • Aside from Ethereum, investors have also flocked to other altcoins such as Binance and Cardano (ADA), which saw inflows of $0.4 million and $0.6 million respectively.
  • Increased altcoin flows, although small compared to bitcoin, implies that investors are starting to diversify across their digital asset holdings.

Related Stories

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.