Bitcoin inflows rise by $436 million as Ethereum funds face outflows

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Bitcoin (BTC) funds saw inflows of $436 million last week, while Ethereum (ETH) funds bled $19 million over the same period, asset management firm CoinShares reported. Overall, crypto funds saw inflows of $436 million last week, recovering from outflows of $1.2 billion.

Additionally, funds short Bitcoin saw $8.5 million in capital fleeing after three consecutive weeks of inflows. Notably, positive flows into BTC-related products ended a 10-day outflow streak totaling nearly $1.2 billion, as the report highlights.

Ethereum hurt by profitability concerns

On the other hand, the shortcomings of Ethereum-related products could be related to concerns about the profitability of the mainnet following the Dencun upgrade on March 13 this year, which significantly reduced the transaction costs of layer 2 blockchains based on Ethereum.

As a result, fees paid by L2 for storing data on Ethereum have dropped by up to 99.6% in 2024, growepie data shows. Additionally, data from Token Terminal shows that Ethereum’s weekly revenue is at its lowest level to date since August 12, averaging $4.56 million.

Despite Ethereum’s struggles, Solana saw inflows for the fourth week in a row, totaling $3.8 million. Multi-asset funds also saw inflows of $22.8 million.

The report pointed out that appetite for crypto-related investment products picked up pace by the end of last week.

This can be attributed to a shift in market expectations for a potential 50 basis point interest rate cut on September 18 following comments from former New York Fed President Bill Dudley.

The US leads the inflows

Regionally, the US led with inflows of $416 million, followed by Switzerland’s $27 million inflows. Notably, Switzerland holds the second largest amount of flows to date, approaching $400 million.

Germany also saw positive flows last week, totaling $10.6 million. However, the country’s net inflows so far stand at $319 million in 2024.

Canada and Sweden saw minor outflows of $18 million and $4.6 million.

Blockchain stocks saw inflows of $105 million following the launch and launch of several new ETFs in the US.

Trading volume in ETFs was flat at $8 billion for the week, significantly lower than the $14.2 billion average seen this year so far.

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