Ethereum ETPs Lead Institutional Investment as Crypto Funds Rebound
After the market slump on August 5, institutional investors turned to Ethereum exchange-traded products (ETPs) as their top choice. According to a report by CoinShares published on August 12, crypto investment products saw inflows of $176 million in the week ending August 11.
Ethereum (ETH) funds benefited the most, attracting $155 million in inflows, which is about 88% of the total. So far this month, ETH funds have led the way with $150 million in inflows, bringing the total for 2024 to $862 million—the highest since 2021. This surge is largely due to the recent launch of US spot-based ETFs.
Cointelegraph reported that US spot Ether ETFs saw their first week of inflows since their launch in late July, with the nine new products gaining around $105 million during the week starting August 5.
In comparison, Bitcoin ETPs only saw $13 million in inflows for the week, with $366 million in outflows for the month so far. Interestingly, short Bitcoin ETPs saw their largest outflows since May 2023, totaling $16 million, reducing assets under management (AUM) for short positions to their lowest level this year, signaling a major exit by investors.
Multi-asset or altcoin funds also outperformed Bitcoin ETPs, attracting $18.3 million in inflows during this period.
Since the market correction on August 5, crypto markets have recovered by around 20%, bringing total capitalization back to $2.2 trillion by August 13. The total AUM of institutional investment products also bounced back to $85 billion after losing over $20 billion during the market downturn.
Meanwhile, ETH prices have rebounded by 23%, rising above $2,700 after dipping below $2,200 on August 5. Bitcoin (BTC) has also recovered, gaining around 19% after falling below $50,000.
Not a financial advice, includes third party opinions.