Ethereum Leads $176M Crypto Fund Flows As Investors Buy Discount

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Crypto funds attracted $176 million in inflows last week, with products indexed to Ethereum (ETH) leading the pack with inflows of $155 million, according to CoinShares. Total assets under management (AUM) of investment products, which fell to $75 billion during the correction, rebounded to $85 billion.

This brings its year-to-date ETH fund inflows to $862 million, the most since 2021, largely driven by the recent launch of exchange-traded funds (ETFs) in the U.S. as investors saw the recent weakness of prices as a buying opportunity.

Bitcoin, after initial outflows, saw significant inflows in the latter part of the week, totaling $13 million. Short Bitcoin exchange-traded products (ETPs) saw their biggest outflows since May 2023 at $16 million, reducing AUM for short positions to the lowest level since the beginning of the year.

In addition, every region saw inflows, indicating widespread positive sentiment following the price correction. The US led with $89 million, followed by Switzerland ($20 million), Brazil ($19 million) and Canada ($12.6 million).

Trading activity in ETPs rose to $19 billion for the week, beating the weekly average of $14 billion for the year.

US ETFs end the week with outflows

Spot Bitcoin and Ethereum ETFs traded in the US ended last week with outflows. Ethereum ETFs exited their holdings of nearly $16 million in cash, totaling $68.5 million in outflows between August 5 and 9, equivalent to 1% of their total AUM.

Notably, as reported by Crypto Briefing, BlackRock’s ETHA is headed for $1 billion in net inflows.

Meanwhile, Bitcoin ETFs posted net outflows of $167 million over the same period, after ending last Friday with negative net inflows of $89.7 million. Outflows for US-traded Bitcoin ETFs represent 0.32% of their total AUM, which surprised Bloomberg ETF analyst Eric Balchunas.

In an X (ex-Twitter) post, Balchunas said he expected outflows of 2% to 3% of total Bitcoin ETF AUM after opening the week with BTC correcting 21%.

“I’m bullish on the intestinal fortitude of ETF investors (across asset classes), but even I’m surprised here. I was expecting 2-3% of aum to go away and declare this as ‘strong,’” the analyst said.

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