Cryptocurrency investment products (ETPs) continued to see strong inflows over the past week, with a particular explosion from ETH-related trading products, according to the latest report from CoinShares.
Ether leads the capital inflow wave
Digital asset management firm CoinShares announced on Monday that global crypto ETPs attracted $3.75 billion in net inflows during the trading week ending on Friday.
Among these, Ether ETP stood out with nearly $2.9 billion in inflows, accounting for the majority of the total value. This capital influx coincided with a strong price increase of ETH, as this coin reached $4,236, nearing its historical peak of $4,700.
However, market sentiment quickly changed. After four consecutive days of attracting capital, Ether along with Bitcoin saw outflows on Friday, indicating that investors began to take profits after a hot streak.
Meanwhile, Bitcoin peaked at over $124,000 on Wednesday, but inflows into Bitcoin ETP funds remained modest. Last week, these products recorded only $552 million in inflows, equivalent to about 15% of total market inflows.
This reflects a marked change in investor risk appetite: instead of focusing on Bitcoin, they are seeking opportunities in altcoin ETP products, particularly Ethereum.
In the altcoin group, Solana and XRP continued to make their mark with inflows of $176.5 million and $125.9 million, respectively, showing sustained interest from investors. In contrast, Litecoin and Toncoin had less luck as they experienced outflows of $0.4 million and $1 million.
This divergence indicates that the altcoin market is experiencing a shift in capital flows, primarily focusing on assets seen as having long-term potential or benefiting from new ETP/ETF products.
Record-breaking trading week for cryptocurrency ETFs
Not only the capital inflows, but trading volumes also saw a boom. According to Bloomberg’s ETF analyst, Eric Balchunas, last week recorded the highest trading volume ever for spot crypto ETFs.
In just four trading days, the total trading volume of Bitcoin and Ether ETFs reached $40 billion, with Ether ETFs dominating. Ether ETFs alone recorded $17 billion in trades, breaking all previous records.
Eric Balchunas emphasized:
"It's amazing that the Ether ETF actually woke up in July and is now booming strongly."
In the same vein, Nate Geraci, President of NovaDius, also noted that spot Ether ETFs had 'completely shattered the previous weekly trading volume record,' while sarcastically adding:
"Is there anyone out there who still believes there is no demand for Ether ETFs anymore?"
With ETF volumes booming and record capital inflows, many analysts believe this could be a major turning point, opening a new cycle in the development of the digital asset market, where Ether and altcoins will become central pieces alongside Bitcoin.
