Crypto investment products continue net inflows run despite week of mixed sentiment

• Digital asset ETFs recorded $245 million of net inflows last week, a slight step down as the inflow streak continues.
• Bitcoin saw inflows of $519 million, potentially spurred by rumors of a US BTC reserve.
• Ethereum ETFs saw huge inflows, but Grayscale's ETHE outflows prevailed over their success.

Digital asset products recorded net inflows of $245 million last week, sliding from $1.35 billion after a week of mixed sentiment. Meanwhile, the launch of Ethereum ETFs also sparked a surge in digital asset trading volume.

ETH ETFs stir high excitement among crypto ETF investors

Digital asset investment products saw minimal inflows in the past week, recording net inflows of $245 million as the inflow streak continued, according to a CoinShares report. This move pushed their year-to-date inflows to a record $20.5 billion. The recent debut of US spot Ethereum ETFs also boosted weekly trading volumes across crypto products to a two-month high of $14.8 billion.

Geographically, the US had net inflows of $272 million, potentially triggered by the Bitcoin Conference in Nashville and the increased role of crypto-centric voters in upcoming US elections. Switzerland also held strong, recording inflows of $40 million. Other countries that recorded net inflows include Canada and Australia, which had $2.5 million and $1.7 million, respectively.

Germany continued a negative run, with $59.6 million in net outflows. Other outflows came from Hong Kong, Brazil and Sweden, with $3.5 million, $5.6 million and $2.6 million, respectively.

Bitcoin retained its weekly net inflows streak, raking in $519 million despite starting the week with net outflows of $78 million. The earlier outflows coincided with speculation that the Bitcoin Conference historically was a sell-the-news event.

The $519 million net inflows may have been stirred by increased positive sentiment caused by rumors of the US government adding Bitcoin to its reserve assets if Republican nominee Donald Trump is elected President in the upcoming November elections. At the end of last week, Bitcoin ETFs' month-to-date inflows were at $3.6 billion, while their year-to-date net inflows reached $19 billion.

Meanwhile, Ethereum-based products had the highest share of trading volume in the past week, surging 542% after the approval of US spot Ethereum ETFs. The products initially grabbed a net inflow of $2.2 billion, one of the highest recorded since December.

However, the massive outflows from Grayscale Ethereum Trust (ETHE) sent its net flows plummeting to $285 million in outflows.

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