Digital asset investment products experienced a substantial influx of capital last week, with net inflows totaling $176 million.
What Happened: This surge in investment comes as investors viewed the recent price weakness as an attractive buying opportunity, according to the latest report from CoinShares.
The report highlights that Ethereum emerged as the primary beneficiary of the market correction, attracting an impressive $155 million in inflows last week alone.
This surge has propelled Ethereum’s year-to-date inflows to $862 million, marking its highest level since 2021.
The launch of U.S. spot-based ETFs has been a key driver behind Ethereum’s strong performance.
While Bitcoin started the week with outflows, it managed to recover in the latter half, concluding with $13 million in net inflows.
Notably, short Bitcoin ETPs experienced their most significant outflows since May 2023, totaling $16 million (23% of Assets under Management).
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This substantial exit of investors from short positions has reduced the Assets under Management (AuM) for short Bitcoin to its lowest level since the beginning of the year.
The recent market correction had initially wiped over $20 billion off the total AuM of investment products, bringing it down to $75 billion.
However, the swift recovery has seen AuM bounce back to $85 billion.
Trading activity in ETPs was particularly robust, reaching $19 billion for the week, significantly higher than the weekly average of $14 billion observed so far this year.
Interestingly, the report notes that every region saw inflows last week, suggesting a unanimous positive sentiment towards digital assets following the price correction.
The United States led the charge with $89 million in inflows, followed by Switzerland ($20 million), Brazil ($19 million), and Canada ($12.6 million).
However, it’s worth noting that the U.S. remains the only country to see net outflows month-to-date, totaling $306 million.
What’s Next: This resurgence in digital asset investments comes at a crucial time for the industry, as it prepares for Benzinga’s Future of Digital Assets event on Nov. 19.
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