Digital Asset Funds Witness $785M Inflows as Ethereum Sentiment Recovers

Weekly Inflows Reach $785 Million

Digital asset investment products have reported a significant $785 million in weekly inflows, pushing the year-to-date (YTD) totals to $7.5 billion, according to CoinShares. This marks a full recovery from the February-March outflows, which saw nearly $7 billion leave the market.

Mixed Regional Sentiment

Investor sentiment varied across different regions. The United States led the inflows with $681 million, followed by Germany and Hong Kong with $86.3 million and $24.2 million, respectively. Notably, Hong Kong's inflow was the highest since November 2024. In contrast, Sweden, Canada, and Brazil experienced outflows of $16.3 million, $13.5 million, and $3.9 million, respectively.

Bitcoin and Ethereum Performance

Bitcoin (BTC) attracted $557 million in inflows, although this was a decrease from the previous week, potentially influenced by the US Federal Reserve's continued hawkish stance. Meanwhile, short-bitcoin products saw a fourth consecutive week of inflows, totaling $5.8 million, indicating investor caution amid recent price gains.

Ethereum (ETH) stood out with $205 million in inflows last week and $575 million YTD. This surge is attributed to renewed investor confidence following the successful Pectra upgrade and the appointment of Tomasz Stańczak as the new co-executive director. Solana (SOL), however, was the only exchange-traded product (ETP) to record outflows, amounting to $0.89 million.

Outlook and Investor Sentiment

The digital asset market appears to be on a recovery path, with consistent inflows over the past five weeks. The positive sentiment in Ethereum, driven by recent technological and leadership changes, suggests a potential bullish trend. However, the mixed regional sentiment highlights the ongoing uncertainty and varying investor confidence globally.

For more detailed insights, the full report is available on the CoinShares blog.