Ethereum leads market recovery with $155 million in inflows amid recent recession

Ethereum has seen the biggest upside from the recent market decline, as investors appeared to have seen price weakness as a buying opportunity.

In fact, data suggests that Ethereum has managed to attract $155 million in inflows over the past week. According to CoinShares, the latest round of inflows boosted its total year-to-date inflows to $862 million, the highest since 2021, driven mainly by the recent introduction of US spot ETFs.

Bounce of tickets

In addition to Ethereum, positive sentiment is also evident for other crypto assets. Bitcoin, for example, saw a significant increase in inflows towards the end despite initial outflows earlier in the week, bringing the weekly total to $13 million.

On the other hand, short Bitcoin ETPs recorded their largest outflows since May 2023, totaling $16 million (23% of AuM), which has pushed their AuM for short positions down to the lowest level of the year, indicating a significant outflow of investors.

CoinShares weekly digital asset fund flows report revealed that the positive trend also extended to investment products related to Solana, XRP and Cardano, which received weekly inflows of $4.5 million, $0.7 million and $0.6 million, respectively.

Narrowing in, digital asset investment products collectively saw $176 million in inflows as investors saw recent price declines as a buying opportunity. While total assets under management (AuM) for these products had fallen to $75 billion (losing more than $20 billion during the market correction), it has since recovered to $85 billion according to CoinShares estimates.

Meanwhile, trading volume for exchange-traded products (ETP) rose to $19 billion for the week, surpassing the $14 billion weekly average seen this year.

Increases overall optimism

CoinShares also revealed an unusual trend of tickets from all regions last week. This indicated a collective optimism towards the asset class after the recent decline in prices. The biggest entries came from the US, Switzerland, Brazil and Canada, with a total of $89 million, $21.3 million, $20 million and $19.2 million, respectively.

Additionally, Germany, Australia, and Sweden recorded $12.6 million, $5.9 million, and $5.1 million, respectively, in weekly receipts. Despite this, the US remains the only country with net outflows for the month at $306 million.

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