- November 7, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Last week, digital investment products saw a 6th consecutive week of inflows, pushing inflows into Ethereum to its highest point in more than a year. Ethereum’s price is also up by 5.72% in a 7-day timeframe, indicating the smart contract platform is now in a largely bullish sentiment.
Digital asset investment products have been witnessing inflows since the end of September and throughout October, mirroring the bullish sentiment in the larger crypto market.
Ethereum Sees Largest Inflow of Institutional Funds Since August 2022
After several months of lackluster interest and continued outflows from the institutional landscape, it appears major investors are gaining confidence in Ethereum once more. The latest weekly report from CoinShares shows digital asset investment products saw inflows of $261 million last week to reach a six consecutive week inflow totaling $767 million.
Bitcoin has largely dominated the headlines, attracting huge investments from institutional investors and seeing its price skyrocket to a new yearly high. Bitcoin saw the lion’s share of inflows last week of $229 million, bringing its year-to-date inflows to $842 million.
Amidst all this institutional inflow into Bitcoin, Ethereum also witnessed large inflows to dominate altcoins, reaching $17.5 million last week. In fact, this was the largest inflow of big money into the digital products of Ethereum since August 2022. Consequently, Ethereum’s month-to-date net flow has now flipped to a positive $13.6 million, although its year-to-date net flow is still at a negative $107 million.
Similar Sentiment Among Altcoins
Other altcoins like Solana, XRP, and Cardano also had inflows last week. Solana received a total of $11 million in inflows, while Chainlink, XRP, and Cardano had $2 million, $0.2 million, and $0.5 million, respectively. This new influx of money signals institutional investors might be willing to put money back into altcoins as the entire crypto market looks to reignite a strong bullish run.
In terms of geographical location, the lion’s share of investments came from the US, as investors look towards the SEC’s approval of spot Bitcoin ETFs as a catalyst for the next sustained bull run.
US investors poured $157 million into digital asset investment products throughout the week. This has come in light of the US Federal Reserve‘s decision to hold its interest rates at a 22-year high. Germany, Switzerland, and Canada followed with respective inflows of $63 million, $36 million, and $9 million.
According to CoinShares, the latest run of inflows has now surpassed the total inflows of $736 million throughout 2022. It now matches the July 2023 six consecutive inflows and is the largest since the end of the bull market in December 2021.
Ethereum is now slowly moving towards $2,000 and has formed a minor support at around $1,870. ETH is trading at $1,894 at the time of writing.
