Ethereum Products Attracts $9.5 Million Inflows Ahead of US Elections

Digital asset investment funds recorded massive inflows, with altcoins like Ethereum (ETH) and Solana (SOL) gaining ground.

Digital asset investment funds recorded massive inflows last week, with altcoins like Ethereum (ETH) and Solana (SOL) gaining ground. This comes as institutional flows picked up due to macro factors like the upcoming U.S. Presidential elections, while retail sentiments moved in line with Bitcoin prices and reported inflows into the market. On-chain data also indicates heightened demand for crypto ETFs in the last seven days.

According to a new CoinShares Crypto Fund Flow report, Ethereum products saw $9.5 million in inflows over the last seven days. This marks a significant shift from the asset’s poor performance in the past few weeks. Over the last 30 days, outflows from ETH products totaled $13.7 million as the asset failed to capitalize on the rally in Bitcoin prices. Several factors contributed to Ethereum's struggles, despite stakeholders largely expecting the asset to trend upwards given the broader ecosystem.

This week, Ethereum flows beat out Solana, whose price surged for several days, garnering institutional attention. The subsequent fluctuations in SOL price led to outflows changing positions on a weekly basis. In total, outflows from SOL products amounted to $5.7 million, bringing 30 movements into the red slightly. However, outflows of $600K are considered minor in most projections and could quickly reverse. Year-to-date inflows into ETH products stand at $758 million, compared to Sol's $59 million.

Elsewhere, multi-assets stood underwater with outflows of $3.1 million, bringing year-to-date figures to 467 million. Overall, the crypto market saw inflows of $2.17 billion into funds last week as assets under management soared to $102 billion.

Crypto market bellwether Bitcoin soared to levels not seen in several months before undergoing a slight correction. Last week, BTC funds saw inflows of $2.15 billion, though the last few days have seen the asset clock in the negatives. Macro factors largely influenced Bitcoin's momentum, with many turning to the safe-haven asset amid global volatility. The United States elections also played a significant role in driving institutional flows into the country.

“Regionally, the US saw US$2.2bn of inflows, while Germany also saw minor inflows of US$5.1m. We believe euphoria around the prospect of a Republican victory was the likely reason for these inflows as they were in the first few days of last week, as polls have turned, we saw minor outflows on Friday, highlighting how sensitive Bitcoin is to the US elections at present.”