ETH Outpaces BTC in Investor Interest as Markets Rebound: CoinShares Report

• Ethereum dominates inflows, capturing 88% of new investments in a market rebound.
• Bitcoin struggles with mixed results, while ETH outpaces BTC as investor interest surges.

According to a weekly Digital Asset Fund Flows report published on August 12, asset manager CoinShares revealed that crypto asset investment products experienced significant inflows of $176 million for the week ending August 11. This development aligns with predictions made earlier in a CNF update regarding Ethereum rival Solana’s potential to outperform BTC and ETH.

Furthermore, Ethereum exchange-traded products emerged as the preferred choice for institutional investors, with substantial capital flowing back into crypto funds following the market downturn on August 5.

Ethereum Funds Lead Inflows and Performance

Ethereum (ETH) funds attracted the majority of these inflows, with $155 million, or approximately 88% of the total, pouring into Ether assets.

This surge in investment is a rebound from the recent market correction and has driven the year-to-date inflows for ETH funds to $862 million, marking the highest level since 2021. CoinShares attributed this growth largely to the recent launch of US spot-based ETFs.

Bitcoin ETPs and Multi-Asset Funds Show Mixed Results

However, Bitcoin ETPs managed only $13 million in inflows for the week and have faced outflows of $366 million month-to-date. Notably, short Bitcoin ETPs experienced their largest outflows since May 2023, totaling $16 million, which has reduced the assets under management for these positions to their lowest level since the beginning of the year.

On a positive note, the crypto market has seen a recovery of approximately 20% since the major correction on August 5, with total capitalization rebounding to $2.2 trillion by August 13. The total assets under management (AUM) for institutional investment products also recovered to $85 billion, following a loss of over $20 billion during the market rout.

At the time of writing, surged by 4.07% in the past day and 5.34% in the past week, BTC is valued at $2,651.47. See price chart below.