Ethereum investment products recorded a staggering $1.59 billion in inflows last week, marking the second-largest weekly total in the asset’s history.
Key Takeaways:
Ethereum investment products led with $1.59 billion in weekly inflows, outpacing Bitcoin’s $175M outflows. US spot Ethereum ETFs have now pulled in $9.33 billion since launch. Altcoin inflows surged for Solana and XRP, fueling speculation of an emerging altcoin season.The surge helped push digital asset inflows across all products to $1.9 billion, extending a 15-week streak of positive momentum, according to data from CoinShares.
Bitcoin, in contrast, saw outflows totaling $175 million, an unusual reversal as Ethereum took the lead.
Altcoin Season Buzz Grows Amid Ethereum’s Surge and Bitcoin’s Dip
The divergence has sparked renewed speculation over whether an “altcoin season” may be underway.
Solana and XRP followed Ethereum’s strong performance with inflows of $311 million and $189 million, respectively. SUI also drew $8 million.
Meanwhile, other altcoins struggled to attract capital, with Litecoin and Bitcoin Cash seeing outflows of $1.2 million and $660,000.
Regionally, U.S.-based products dominated, bringing in $2 billion, while Germany saw $70 million in inflows. Those gains were partially offset by losses in Canada, Hong Kong, and Brazil.
Year-to-date, Ethereum products have now attracted $7.79 billion, exceeding their total inflows for all of 2023.
On Friday, spot Ethereum ETFs continued their strong performance, marking 16 straight trading days of inflows and adding $452.72 million in net capital, according to SoSoValue.
BlackRock’s iShares Ethereum Trust led the pack again with $440.10 million in inflows, pushing its total assets to $10.69 billion.
Other ETFs, including Bitwise’s ETHW and Fidelity’s FETH, saw much smaller inflows of $9.95 million and $7.30 million, respectively.
Grayscale’s ETHE remained an outlier, continuing to bleed funds with $23.49 million in redemptions, bringing its total outflow to $4.29 billion.
Since their launch, U.S. spot Ethereum ETFs have pulled in $9.33 billion in cumulative inflows, with total net assets reaching $20.66 billion, equivalent to 4.64% of Ethereum’s market cap.
Institutional Demand Fuels Continued Inflows Into Ethereum Products
The continued inflows into Ether-based products come as institutional interest in Ethereum has surged in recent weeks.
BitMine Immersion Technologies recently acquired $2 billion worth of ETH over a 16-day span, making it the largest corporate holder of Ethereum.
In total, corporate treasuries now hold 2.31 million ETH, representing 1.91% of the asset’s circulating supply, according to Strategic Ether Reserves.
Last week, Bitwise CIO Matt Hougan said he expects the momentum to continue, driven by growing interest in DeFi, staking, and tokenization.
He projected up to $20 billion in ETH demand over the next year from ETFs and institutions, while Ethereum is only expected to issue 0.8 million ETH, raising the possibility that demand may outstrip supply by nearly seven times.
As reported, Bloomberg’s senior ETF analysts have assigned a 95% chance that the SEC will approve spot ETFs for Solana, XRP, and Litecoin this year, raising their previous odds from 90% amid growing optimism for institutional crypto products.
They also expect a crypto index ETF tracking multiple assets could gain approval as early as this week, signaling broader access to altcoins for traditional investors.
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