Digital asset investment products saw a surge in net inflows last week, reaching $3.75 billion, according to CoinShares’ most recent weekly report. This increase marked one of the largest weekly gains in history and comes after a period of subdued market sentiment. The influx of capital coincided with a recent rally in crypto prices, pushing total assets under management (AuM) to a new high of $244 billion.
Ethereum emerged as the standout performer, attracting $2.87 billion in inflows, representing 77% of the total weekly amount. James Butterfill, CoinShares’ Head of Research, highlighted that the majority of last week’s inflows went into BlackRock’s iShares Ethereum fund (ETHA), which received over $2.3 billion in fresh capital. ETHA, the largest spot Ethereum ETF with assets exceeding $10 billion, has played a significant role in the record performance of ETH-focused funds, which have accumulated $11 billion in new capital this year.
On the other hand, Bitcoin-focused funds experienced smaller inflows in recent weeks, signaling a shift in investor preference towards Ethereum. Despite this trend, Bitcoin remains the largest asset in terms of AuM, with $180.7 billion compared to Ethereum’s $37.7 billion. Bitcoin funds saw $522 million in new capital last week.
In addition to Ethereum and Bitcoin, XRP and Solana continue to be favored altcoins among institutional investors. Funds focusing on these digital assets received over $300 million in combined inflows last week, bringing their year-to-date flows to more than $2 billion. These funds now manage over $5 billion in assets.
The United States dominated the inflows, accounting for 99% of the total with $3.73 billion. Other markets, including Canada, Hong Kong, and Australia, also saw modest gains. However, Sweden and Brazil experienced outflows of $49.9 million and $10.6 million, respectively.
Overall, the crypto market is experiencing a resurgence in investor interest, with Ethereum leading the way in attracting significant inflows. As the market continues to evolve, institutional investors are diversifying their portfolios and exploring opportunities beyond Bitcoin.