- Ethereum leads with a $155 million inflow, the highest this year, driven by U.S. spot-based ETF launches.
- Franklin Templeton launches a tokenized fund on Ethereum, highlighting the integration of traditional finance with DeFi.
CoinShares data shows a dramatic shift in the digital asset investment landscape, with a $176 million inflow of capital into digital asset investment products. This rise in investment is largely due to investors who saw recent price weakness as a buying opportunity, reaffirming their belief in the market’s long-term prospects.
Ethereum Leads with $155M Weekly Inflow Amid Market Recovery
Among the many digital assets, Ethereum has emerged as the biggest winner from this market slump. It has received a $155 million inflow in the last week alone.
This big inflow has brought Ethereum’s total inflows this year to $862 million, the highest level since 2021. The recent launch of U.S. spot-based ETFs has largely fuelled the influx, demonstrating institutional investors’ increased interest in Ethereum.
In contrast, Bitcoin’s inflows have been rather modest, with $13 million recorded. However, the market has seen a significant outflow of $16 million from Bitcoin short ETPs since May 2023.
This outflow accounts for 23% of the assets under management (AuM) for these short positions, bringing the AuM to its lowest point since the beginning of the year. This trend implies a major exit of investors from short positions in Bitcoin, implying a probable shift in market sentiment toward a more optimistic outlook for the cryptocurrency.
In other news, as we previously reported, Franklin Templeton has taken a significant leap in the digital asset market, introducing a tokenized fund on the Arbitrum and Ethereum ecosystems. The OnChain U.S. Government Money Fund (FOBXX) is now accessible over the Ethereum blockchain, according to the company.
This is a big step forward in the integration of traditional financial products and blockchain technology, showing established financial institutions’ expanding acceptance of decentralized finance (DeFi) systems.
Furthermore, a recent investigation found that institutional investors interest has shifted from Bitcoin ETFs to Ethereum ETFs in recent days. This pattern implies that, while Ethereum ETFs are now gaining more institutional interest than Bitcoin ETFs, Bitcoin continues to dominate in the retail investment arena, ensuring its position as the top cryptocurrency.
Meanwhile, Ether (ETH) is currently trading at roughly $2,649.41, up 3.10% over the last 24 hours and 4.83% over the last week.
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