According to CoinShares' latest weekly report, cryptocurrency investment vehicles saw a massive inflow of $176 million as investors took advantage of the recent price decline.
CoinShares head of research James Butterfill noted that crypto ETP AUM fell to as low as $75 billion during the correction, but has since rebounded to $85 billion in the latest report.
Exchange-traded fund (ETP) volume surged to $19 billion during the period, above this year's weekly average of $14 billion.
Ethereum Dominates
Ethereum was the biggest beneficiary of the market correction, seeing $155 million in inflows last week, bringing its year-to-date inflows to $862 million, the highest since 2021, mainly due to the recent launch of a U.S. spot-based ETF.
Market experts have praised the Ethereum ETF's performance since its launch in July. For reference, Nate Geraci, president of ETF Store, noted that BlackRock's iShares Ethereum ETF is currently one of the top six ETFs scheduled to launch in 2024.
Djerassi said:
“iShares Ethereum ETF has raised over $900 million in less than three weeks and is likely to hit $1 billion this week.”
Meanwhile, Bitcoin saw mixed performance last week, as the flagship digital asset began the week with outflows but reversed course over the weekend as investors pumped $13 million into BTC-related investment vehicles.
In contrast, the Short Bitcoin ETP experienced its largest outflow since May 2023, amounting to $16 million, or 23% of assets under management. The decline in assets under management in short positions reflects a significant withdrawal by investors.
Other digital assets such as Solana, XRP, Cardano and Litecoin also saw smaller inflows of around $6 million last week.
Interestingly, all regions saw inflows, indicating broad-based positive sentiment towards the asset class following the recent price correction.
The United States led the way with $89 million, followed by Switzerland with $20 million, Brazil with $19 million and Canada with $12.6 million, but the United States was the only country to see a net outflow so far this month, reaching $306 million.
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