The latest data from CoinShares has revealed a significant comeback in the crypto market. According to the ‘digital asset fund flows weekly report,’ there has been a notable surge in investor confidence with digital asset investment products receiving $176 million in inflows. James Butterfill, head of research at CoinShares, noted that this surge signals a strong positive sentiment across the board, particularly for Ethereum-based funds.
Ethereum products have distinctly stood out in the report, attracting $155 million of the total inflows. This is the highest year-to-date intake since 2021. The introduction of spot Ethereum exchange-traded funds (ETFs) in the United States has played a crucial role in boosting Ethereum’s position in the global crypto market. The successful live trading of these funds has not only increased Ethereum’s market cap but has also led to a rise in investment product offerings.
Despite experiencing outflows earlier in the week, Bitcoin is expected to end the week with a positive total inflow of approximately $13 million. However, Short Bitcoin ETPs saw their largest outflows since May 2023, totaling $16 million. This indicates a significant investor exit from short positions.
Despite initial volatility, the overall market sentiment has been overwhelmingly positive. The inflows are not isolated incidents but part of a broader global positive reception to digital assets. Countries like the United States, Switzerland, Brazil, and Canada have been actively injecting substantial capital into the market, showcasing a collective bullish outlook.
Both Ethereum and Bitcoin are struggling against the bears but have managed to maintain their price levels above key support levels. Ethereum is currently trading above $2,500, with a current price of $2,689. The asset has seen an increase of more than 11% in the past week, with a 1.6% surge in the last day. On the other hand, Bitcoin has also experienced a surge of 11.4% in the past week, with a slight decline of 0.4% in the last day. Despite this, Bitcoin is still trading below $60,000.
The recent data from CoinShares highlights the renewed interest in Ethereum and Bitcoin in the global crypto market. With increased inflows and positive sentiment, both assets are showing resilience against market challenges. The rise of Ethereum-based products and the continued investment in Bitcoin signal a promising future for these digital assets. Investors are closely monitoring the market dynamics as they navigate the volatility and opportunities presented by the crypto space.
