The latest report from CoinShares reveals that the positive sentiment towards crypto assets continues, with total inflows reaching US$646 million last week. This brings the year-to-date figure to a record-breaking US$13.8 billion, surpassing the previous high of US$10.6 billion set in 2021. But there are signs that the initial frenzy around Exchange Traded Funds (ETFs) may be abating. Here’s some data on Bitcoin, Ethereum and various altcoins…

Fund inflows remained strong

Cryptocoin.com As we have reported, CoinShares publishes data on institutional investor flows each week. While overall inflows remained strong this week, weekly flow levels did not reach the heights seen in early March. Moreover, trading volumes fell significantly, from USD 43 billion in the first week of March to USD 17.4 billion last week. This points to a potential period of calm, especially in terms of ETF investment.

The report highlights a regionally polarized landscape. The US remains a major driver of inflows, contributing USD 648 million last week. Brazil, Hong Kong and Germany also saw positive inflows, albeit on a smaller scale, amounting to USD 10 million, USD 9 million and USD 9.6 million respectively. However, Switzerland and Canada recorded outflows of USD 27 million and USD 7.3 million, respectively.

CoinShares report published: Selling Ethereum and short Bitcoin

Bitcoin continues to dominate, attracting the lion’s share of inflows amounting to USD 663 million. This further reinforces its position as the primary destination for investors in the cryptoasset space. Interestingly, short Bitcoin investment products witnessed outflows totaling USD 9.5 million for the third consecutive week. This suggests that the bearish trend may be slightly diminishing as some short sellers are potentially exiting their positions.

Ethereum continues to buck the trend. For the fourth week in a row, it experienced outflows of US$22.5 million. This is in stark contrast to most other altcoins that continue to attract inflows. Litecoin, Solana and Filecoin emerged as notable examples, attracting inflows of US$4.4 million, US$4 million and US$1.4 million respectively. In addition, Cardano XRP and Polkadot also recorded inflows of $100k, $200k and $600k.

ETF excitement fades

CoinShares report paints a picture of a crypto asset market in flux. While overall sentiment remains positive, with record-breaking inflows since the start of the year, there are signs that the initial ETF excitement may be stabilizing. Bitcoin remains in the lead, attracting a significant amount of investment, while short sellers seem to be losing some ground. But Ethereum’s recent outflows raise questions about its short-term performance. The strong outlook for altcoins such as Litecoin, Solana and Filecoin suggests diversified investor interest beyond new established players.

Looking ahead, it will be interesting to see if current trends continue. Will ETF inflows pick up, or are we witnessing a shift in investor strategies? Will Ethereum be able to reverse its recent downtrend, or will altcoins remain in the limelight? The answers to these questions will likely shape the course of the cryptoasset market in the coming weeks and months.