Ethereum products continue to lead, but global crypto fund inflows decelerate amid Fed policy uncertainty: CoinShares
Quick Take Crypto investment products added another $286 million worth of net inflows for the eighth consecutive week, although the pace continues to slow as investors await clarity from the Fed, according to asset manager CoinShares. Ethereum-based funds led for the second consecutive week, while the usually dominant global Bitcoin investment products saw further net outflows.
Crypto investment products run by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares registered another $286 million worth of net inflows globally last week, according to CoinShares data — with Ethereum-based funds again outperforming Bitcoin.
It marks the eighth consecutive week of gains, now totaling $11.3 billion. "However, there has been a noticeable deceleration amid uncertainty over monetary policy, with investors adopting a wait-and-see stance ahead of further signals from the U.S. Federal Reserve on inflation," CoinShares Head of Research James Butterfill warned in a Monday report .
Weekly crypto asset flows. Images: CoinShares .
Ethereum investment products are gaining traction
Ethereum investment products led for the second week in a row, adding $296.4 million worth of net inflows to a seven-week positive run totaling $1.5 billion — accounting for 10.5% of assets under management at the global Ethereum-based funds, Butterfill noted. "This represents the strongest run of inflows since the U.S. Election last November and marks a significant recovery in sentiment amongst investors," he said.
U.S. spot Ethereum exchange-traded funds accounted for $281.3 million of the weekly inflows, according to data compiled by The Block, with their 15-day positive streak now totaling $837.5 million.
Meanwhile, global Bitcoin-based products slumped to their second consecutive week of net outflows, with $56.5 million exiting the funds during the period. However, short-Bitcoin products also witnessed a second week of net outflows, with $4.1 million trimmed.
Other altcoin investment products were subdued, with Sui instruments attracting minor net inflows of $1.1 million, while XRP funds saw a third week of net outflows totaling $6.6 million, Butterfill noted.
Net weekly inflows were experienced broadly across regions, led by the U.S. with $175 million, followed by Germany, Switzerland, Canada, and Australia, with $47.8 million, $15.7 million, $9.8 million, and $6.5 million, respectively. Minor net outflows occurred in Brazil ($9.2 million) and Hong Kong ($14.6 million), marking the end of the latter's record inflow streak.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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