Ethereum ETFs Surge as Institutional Investment Flows Back After Market Dip

Ethereum ETFs – Ethereum Funds Dominate Crypto Inflows Post-August Slump

Ethereum ETFs– Institutional investors have turned their attention to Ethereum exchange-traded products (ETPs), making them the leading choice as money flows back into crypto funds after the market downturn on August 5. According to CoinShares‘ Digital Asset Funds Weekly Report released on August 12, crypto asset investment products saw a total of $176 million in inflows for the week ending August 11.

Ethereum funds were the standout performers, attracting $155 million in inflows during this period, which represents approximately 88% of the total inflows. This significant boost comes on the heels of Ethereum’s strong monthly performance, with $150 million in inflows throughout August alone. Year-to-date, Ethereum funds have accumulated $862 million in inflows, marking the highest total since 2021. CoinShares attributes this surge largely to the recent introduction of U.S. spot-based ETFs.

Bitcoin ETPs Struggle as Market Sentiment Shifts

In contrast, Bitcoin exchange-traded products (ETPs) have faced a challenging week. Bitcoin ETPs managed to garner only $13 million in inflows for the week, while experiencing outflows of $366 million so far this month. The situation is even more pronounced for short Bitcoin ETPs, which saw their largest outflows since May 2023, totaling $16 million. This has reduced the assets under management (AUM) for short positions to their lowest level since early 2024, signaling a significant investor exit.

Additionally, multi-asset or altcoin funds have outperformed Bitcoin ETPs, with an inflow of $18.3 million during the same period. Overall, the crypto market has rebounded by approximately 20% since the major correction on August 5, with total market capitalization recovering to $2.2 trillion by August 13. Institutional investment products’ total AUM has also rebounded to $85 billion, following a loss of over $20 billion during the market downturn.

ETH and BTC Prices Show Resilient Recovery

Ethereum prices have experienced a notable recovery of 23% since dropping below $2,200 on August 5, now surpassing $2,700. Meanwhile, Bitcoin has seen a 19% rebound from its slump below $50,000. These price recoveries reflect the broader market’s resilience and ongoing investor interest in digital assets.