Institutional investors have gravitated towards Ethereum exchange-traded products (ETPs) as capital flowed back into crypto funds following the market downturn on August 5. In its recent weekly report on Digital Asset Fund Flows, published on August 12, CoinShares, an asset management firm, indicated that crypto asset investment products experienced inflows of $176 million for the week concluding on August 11.
The report highlighted that Ether (ETH) funds reaped the most significant benefits from the market adjustment, drawing in $155 million in inflows during that week—accounting for nearly 88% of the total inflows. Furthermore, Ether funds have outperformed on a monthly basis, with $150 million in inflows recorded thus far in August.
This surge brings the total inflows for ETH funds to $862 million year-to-date, marking the highest figure since 2021. CoinShares attributed this trend largely to the recent introduction of U.S. spot-based ETFs.
On August 12, Cointelegraph noted that U.S.-based spot Ether ETFs registered their first week of inflows since their debut in late July, with the nine newly launched products collectively attracting approximately $105 million for the week starting August 5.
According to CoinShares, Bitcoin ETPs lagged behind, managing only $13 million in inflows for the same week and experiencing outflows of $366 million month-to-date. Notably, short Bitcoin ETPs faced their largest outflows since May 2023, totaling $16 million, which has led to a reduction in assets under management (AUM) for these positions to the lowest level seen since the beginning of the year—an indication of significant investor retreat.
In contrast, multi-asset or altcoin funds outperformed Bitcoin ETPs, recording inflows of $18.3 million during the period.
The crypto markets have rebounded by approximately 20% since the significant correction on August 5, with total market capitalization climbing back to $2.2 trillion as of August 13. Additionally, the total AUM of institutional investment products has recovered to $85 billion after over $20 billion was wiped out during the market downturn.
Meanwhile, Ethereum prices have risen by 23%, recovering from a drop below $2,200 on August 5 to surpass $2,700. In comparison, Bitcoin’s price has rebounded by around 19% since its decline beneath $50,000.
Magazine: Ethereum price will lag for ‘months’ as Bitcoin surges: X Hall of Flame, Roman.