Alex Dovbnya
Bitcoin, Solana and other digital assets witness significant inflows, yet Ethereum remains in slump
Digital asset investment products have garnered an impressive $326 million in inflows. This represents the most substantial single-week inflow since July 2022.
Predictably, Bitcoin (BTC) is dominating the scene, attracting 90% of these inflows, and amassing an impressive $296 million.
This surge in Bitcoin investments comes in tandem with a price spike that also triggered inflows of U.S. $15 million into short-Bitcoin investment products.
Furthermore, Solana (SOL) experienced a significant boost with inflows of $24 million.
However, not all major cryptocurrencies enjoyed the influx — Ethereum (ETH) faced another week of outflows, shedding $6 million.
Significant inflows bolster major crypto funds
The inflows are driven by speculation about the U.S. Securities and Exchange Commission (SEC) potentially giving the nod to a spot-based Bitcoin ETF in the country. Such an approval could potentially revolutionize the industry from a regulatory standpoint.
The U.S. played a relatively minor role, accounting for only 12% ($38 million) of the total inflows, while nations like Canada, Germany and Switzerland took the lead with inflows of U.S. $134 million, U.S. $82 million and U.S. $50 million, respectively.
Asia also marked its presence with a notable inflow of U.S. $28 million. These investments have propelled the total assets under management to a robust U.S. $37.8 billion, a peak not witnessed since May 2022.
Ethereum’s struggles in focus
The fact that Ethereum funds keep bleeding cash is not surprising given the lackluster performance of the main altcoin.
As reported by U.Today, the leading altcoin seems to be grappling with challenges. The cryptocurrency’s price is currently languishing around a multimonth low compared to Bitcoin, and it is the lowest since Ethereum’s transition to proof-of-stake (PoS).
Recent data from TradingView indicates a dip in the ETH/BTC trading pair, plummeting to a low of 0.051 BTC, a sharp decline from its zenith of 0.088 BTC in December 2021.
About the author
Alex Dovbnya
