CoinShares revealed that net inflows into its digital asset investment product reached $245 million last week.
The launch of a spot Ethereum ETF in the U.S. helped push exchange-traded fund (ETP) trading volume to $14.8 billion, the highest level since May, according to the company's weekly report.
Crypto ETPs’ total assets under management (AUM) grew to $99.1 billion, while year-to-date inflows reached a record high of $20.5 billion.
Bitcoin Gains New Trust
Bitcoin recorded inflows of $519 million last week, bringing total inflows for the month to $3.6 billion and $19 billion for the year.
James Butterfill, head of research at CoinShares, attributed the inflows to a return of confidence in the asset, which has recently been in the spotlight over its potential role as a U.S. government reserve asset.
At the Bitcoin Conference in Nashville, US politicians including Republican presidential candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis proposed making Bitcoin a strategic treasury asset.
Notably, Senator Lummis introduced a bill that would see the US reserves accumulate 1 million BTC over five years, while President Trump has vowed to make the US a “Bitcoin superpower” and never sell off the 210,000 BTC the government already holds.
Ethereum ETF
on the other hand, Ethereum ETF debuts This resulted in the largest inflows into the digital asset since December 2020. According to a CoinShares report, total inflows into the product reached $2.2 billion, with trading volume increasing by 542%.
Butterfill said:
“This figure is somewhat controversial, as Grayscale (last week) pumped capital from its current closed-end trust ($1 billion) into a new mini-trust ETF, which may help explain the steady outflows in recent years.”
He also noted that the flow of funds was influenced by Grayscale's existing ETHE fund, which saw outflows of $1.5 billion, while the Ethereum ETP saw net outflows of $285 million.
Butterfill added that these outflows are similar to those seen in the company's Bitcoin Trust in January 2024 after the Securities and Exchange Commission (SEC) approved the ETF for trading.
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