The negative streak for investment funds in Ethereum was broken
These financial products facilitate the entry of institutional and corporate money.
The price of ETH rose 6% in two days, reaching $2,710, although it later corrected.
Ether (ETH), the cryptocurrency of the Ethereum network, broke a streak of five consecutive weeks of negative money flows, reporting inflows of $87 million to its investment funds, according to data from CoinShares. This is the first time since early August that ETH-based investment products have received significant capital.
Despite this rally, Ethereum-based funds do not escape monthly outflow trends, accumulating $60.3 million in withdrawals during the month. However, throughout this year, tickets have totaled 765 million dollarsreflecting a continued choice of ETH as an investment vehicle.
The impact of the inflows into ETH was felt by the price of the cryptocurrency, which experienced a 6% increase in a period of two days, reaching USD 2,710. However, after reaching this peak, the price suffered a correction, to USD 2,630 at the close of this article, suggesting that market forces adjusted expectations or that there was profit taking among investors.
In your weekly report CoinShares also mentioned other altcoins, such as solana (SOL), whose investment funds reflected outflows of $4.8 million last week. The behavior of other currencies was varied. This was the case of Litecoin (LTC) and XRP, which in their investment products registered inflows of 2 million and 0.8 million dollars, respectively.
Last week, CriptoNoticias reported on the fifth consecutive week of exits for ETH investment products, with a total withdrawal of $29 million, indicative of a conservative trend among investors.
Bitcoin’s performance
While ETH grapples with its volatility, bitcoin (BTC), the largest digital asset on the market, has set firmer ground. Investment funds based on BTC saw inflows of $1 billion last weeksomething that also increased interest in “short” bitcoin investment products (that bet on the currency’s decline), totaling $8.8 million.
Recently, BTC spot exchange-traded funds (ETFs) have seen a significant influx of capital, with the highest inflow in two months, as reported on CriptoNoticias, suggesting renewed confidence in the largest asset by capitalization.
Overall, cryptocurrency investment products as a whole have recorded a third consecutive week of inflows, totaling 1.2 billion dollars, according to CoinShares. This trend is seen as a reaction to expectations of dovish monetary policy in the US, which has driven a 6.2% increase in assets under management last week.
The approval of new options for certain investment products in the US, such as those from BlackRock, has likely contributed to this positive sentiment, although trading volumes have decreased 3.1% week-on-weekindicating caution in the execution of these opportunities.
At the regional level, the market showed polarization: the United States and Switzerland reported significant inflows of 1.2 billion and 84 million dollarsthe latter figure being the highest since mid-2022. In contrast, Germany and Brazil recorded outflows of $21 million and $3 million, respectively, reflecting a diversity in interest and trust towards cryptocurrencies globally.
This article was created using artificial intelligence and edited by a human Editor.