Second largest cryptocurrency, Ethereum is creating a new space for inflows. Ethereum and related products saw massive inflows in the second consecutive week. CoinShares’ weekly fund flow report data indicated a total inflow of $5.6 million for Ethereum and its related products.
Last week’s inflows of $10.3 million for overall digital asset investments provided data. The report also noted that it is the third consecutive week with inflows to virtual assets. Investors are still cautious about low flows.
Also, last week’s trading volumes of investment products amounted to $886 million. This represents the lowest recorded value since October 2020.
Bitcoin had its third week with minor inflows totaling $7.7 millions. The primary crypto asset also had its record-breaking inflow of about $2.1million last week.
Altcoins also recorded outflows for the week
Last week saw outflows in the altcoins (except Ethereum). Their total outflow was $3.5 million. Avalanche (Cardano), and Polygon have the highest outflows. They had outflows of $0.5 million and $0.8 million respectively.
Last week, Cardano and XRP recorded their first outflows since August, with $500,000 and $300,000 respectively. They are much higher than their inflows in the past. Investors and traders are more afraid of both tokens after they experienced a dramatic drop in value.
One area experienced minor outflows in the week. Other than Sweden which saw an inflow of $16million, all European countries experienced outflows. Germany was also affected by outflows, which totaled to $9.1 million. The US however, saw a cumulative inflow amounting to $7.7million.
About $42.6 Million is the statistical average monthly outflow for investment products that use digital assets. Year-to-year outflows total $448 million.
Ethereum Merge and Ethereum Outflows
Some outflows occurred from ETH-related items in the time before the Ethereum Merge of September 15. The reason for this is the split in sentiment regarding the Merge. While many believed that Ethereum would see a steeper price rise due to the PoS transition, others had an opposing view.
Some investors were quick to liquidate their holdings prior the Merge which caused increased outflows during that period. Others decided to remain with the transition and keep their holdings. They chose to stake their Ether.
After the Merge event’s conclusion, demand is steadily increasing for Ethereum-related goods. The inflows of products have increased in recent weeks.
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