The digital asset market made a strong comeback last week, attracting $176 million in investment inflows as investors took advantage of recent price dips. This resurgence follows a period of market correction that had previously slashed total Assets under Management (AuM) in these products by over $20 billion, reducing them to $75 billion. However, the market’s recent rebound has pushed the AuM back up to $85 billion, according to a report from CoinShares.
During this period, trading activity in Exchange-Traded Products (ETPs) surged, with $19 billion in transactions recorded—well above the year-to-date weekly average of $14 billion. This spike in trading volume indicates heightened investor interest and activity following the recent downturn.
The report highlighted that “unusually, every region saw inflows last week, suggesting unanimous positive sentiment towards the asset class following the recent price correction.” The United States led with $89 million in inflows, followed by Switzerland with $20 million, Brazil with $19 million, and Canada with $12.6 million. Despite this overall optimism, the U.S. remains the only country to experience net outflows for the month, totaling $306 million.
Ethereum emerged as the clear leader during the market’s recovery, drawing in $155 million in inflows last week. This brings Ethereum’s year-to-date inflows to $862 million, the highest level of investment since 2021. The strong performance is largely credited to the recent launch of U.S. spot-based ETFs, which have bolstered investor confidence in Ethereum.
Bitcoin (BTC), however, had a mixed week. Initially, the cryptocurrency experienced outflows but managed to reverse the trend later, ultimately recording $13 million in inflows. Meanwhile, short Bitcoin ETPs saw significant outflows, with $16 million, or 23% of their AuM, being withdrawn.
Bitcoin’s price experienced notable volatility during the week, ending around $58,700, a modest 0.9% increase from the previous week’s close. The cryptocurrency’s price fluctuated dramatically, dipping as low as $49,000 before rebounding and stabilizing above $50,000. This price action reflects ongoing uncertainty in the digital assets market, driven by geopolitical tensions and economic unpredictability.
Despite broader market challenges, Ethereum’s spot ETFs also saw positive momentum, recording $105 million in inflows. Although total flows since inception remain negative, with $405 million in outflows, the outlook for Ethereum spot ETFs is increasingly optimistic. The newly launched ETFs have attracted nearly $1.9 billion in net inflows, offsetting the $2.3 billion in outflows from the Grayscale Ethereum Trust (ETHE).
In a recent analysis, Matteo Greco, a research analyst at digital asset investment firm Fineqia International, noted that total open interest in Bitcoin has dropped by about 12%, from $4.6 billion to $4.1 billion, since the end of July. Greco explained that “a reduction in leverage, while leading to short-term price declines, is often viewed positively by markets as it reduces the risk of over-leveraging, which could result in a more severe market correction if growing more and reaching non-sustainable levels.”
This recent wave of inflows and the market’s cautious recovery suggest that while digital assets remain volatile, investor confidence is gradually returning, especially in assets like Ethereum, which continues to lead the charge in the crypto market’s ongoing evolution.
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