Ethereum
Ethereum ETFs See $2.2 Billion in Inflows as Bitcoin Gains Political Support
CoinShares revealed that its digital asset investment products saw net inflows of $245 million last week.
Trading volume in exchange-traded products (ETPs) hit its highest level since May at $14.8 billion, driven by the launch of Ethereum spot ETFs in the United States, according to the company’s weekly report.
Total assets under management (AUM) of crypto ETPs increased to $99.1 billion, and their year-to-date inflows reached a record $20.5 billion.
Bitcoin sparks renewed confidence
Bitcoin benefited from inflows of $519 million last week, bringing its total flows for the month to $3.6 billion and for the year to $19 billion.
James Butterfill, head of research at CoinShares, attributed the inflows to renewed confidence in the asset, which has been the subject of recent discussions about it being a reserve asset for the U.S. government.
At the Bitcoin conference in Nashville, U.S. politicians including Republican presidential candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis proposed making Bitcoin a strategic asset of the Treasury.
Notably, Senator Lummis introduced a bill that would see the US reserve accumulate 1 million BTC over five years. On the other hand, Trump sworn to make the United States “a Bitcoin superpower” and ensure that the government never sells the 210,000 BTC it already holds.
Ethereum ETF
Meanwhile, the Ethereum beginning ETFs have generated the largest inflows into digital assets since December 2020. According to the CoinShares report, the products saw inflows totaling $2.2 billion, leading to a 542% increase in trading volumes.
Filled with butter said:
“This figure is somewhat controversial because Grayscale funded its new Mini Trust ETF (the previous week) with capital from its current closed-end fund ($1 billion), which may help explain the steady stream of outflows over the past few years.”
He also noted that flows were impacted by Grayscale’s existing ETHE fund, which received $1.5 billion exitsresulting in a net outflow of $285 million for Ethereum ETPs.
Butterfill added that these outflows were similar to those seen in the company’s portfolio. Trust in Bitcoin in January 2024, after the Securities and Exchange Commission (SEC) approves ETF trading.