Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Bitcoin inflows surge $436 million as Ethereum funds face outflows

Bitcoin inflows surge $436 million as Ethereum funds face outflows

Cryptobriefing2024/09/16 14:12
By:Cryptobriefing

Key Takeaways

  • Digital asset investment products saw $436m inflows after a period of $1.2bn outflows.
  • Bitcoin received $436m inflows, while Ethereum faced $19m outflows amid L1 profitability concerns.

Share this article

Bitcoin (BTC) funds registered $436 million in inflows last week, while Ethereum (ETH) funds bled $19 million in the same period, as reported by asset management firm CoinShares. Overall, crypto funds registered $436 million in inflows last week, recovering from $1.2 billion in outflows.

Additionally, funds with short Bitcoin positions registered $8.5 million in fleeing capital after three consecutive weeks of inflows. Notably, the positive flows to BTC-related products ended a 10-day run of outflows totaling nearly $1.2 billion, as highlighted by the report.

Ethereum hurt by concerns over profitability

On the other hand, Ethereum-related products’ shortcomings could be tied to the concerns over the mainnet profitability following the Dencun upgrade on Mar. 13 this year, which significantly reduced the transaction costs of layer-2 blockchains based on Ethereum.

As a result, the fees paid by L2 to store data on Ethereum fell up to 99.6% in 2024, as growthepie’s data reveals. Additionally, data from Token Terminal shows that Ethereum’s weekly revenue is at its lowest year-to-date level since Aug. 12, averaging $4.56 million.

Despite Ethereum’s struggle, Solana registered inflows for the fourth consecutive week, totaling $3.8 million. Multiasset-based funds also saw $22.8 million in inflows.

The report pointed out that the appetite for crypto-related investment products picked up the pace by last week’s end.

This can be attributed to a shift in market expectations for a potential 50 basis point interest rate cut on Sept. 18, following comments from former New York Fed President Bill Dudley.

US leads inflows

Regionally, the US led with inflows of $416 million, followed by Switzerland’s $27 million flows. Notably, Switzerland holds the second-largest amount of year-to-date flows, inching closer to $400 million.

Germany also registered positive flows last week, totaling $10.6 million. However, the country’s net flows amount to negative $319 million in 2024 so far.

Canada and Sweden experienced minor outflows of $18 million and $4.6 million.

Blockchain equities saw inflows of $105 million following the seeding and launch of several new ETFs in the US.

Trading volumes in ETFs remained flat at $8 billion for the week, significantly lower than the average $14.2 billion seen this year so far.

Share this article

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

BREAKING: FBI Operation on the CEO of the Most Talked Cryptocurrency Platform of Recent Times – Phone and Electronics Seized

The FBI launched an operation against one of the most talked about cryptocurrency platforms of the US elections. Here are the details.

Bitcoinsistemi2024/11/14 07:33

Another Good News for Bitcoin and Cryptocurrencies – BTC-Friendly Name Appointed to a Very Critical Position in the US

A name known to be cryptocurrency and Bitcoin friendly has been elected to an important position in the US. Here are all the details.

Bitcoinsistemi2024/11/14 07:33