Ethereum Fund Inflows Hit 2022 High on ETF Listing Request

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Fund inflows into Ethereum investment products hit their highest level since August 2022 last week, according to digital asset manager CoinShares. The spike comes as investors anticipate the potential approval of a physically-backed Ethereum exchange-traded fund (ETF) in the US.

“Ethereum, saw its largest inflows since August 2022 of US$49m, with the last 2 weeks signifying a real turnaround in sentiment, likely related to the recent spot-based ETF listing request,” said James Butterfill, Head of Research at CoinShares.

The asset manager said the flows indicate a distinct turnaround in investor sentiment, likely fueled by BlackRock’s move to file for an Ethereum spot ETF last week.

Overall, digital asset funds saw $293 million in inflows last week across crypto products, marking the seventh consecutive week of inflows. Bitcoin products attracted $240 million, bringing their year-to-date inflows to over $1 billion.

Exchange-traded product (ETP) trading volumes have also increased, making up nearly 20% of total Bitcoin volumes on trusted exchanges and suggesting more ETP investor participation compared to the 2020 and 2021 rallies.

The streak of inflows has pushed total assets under management in crypto investment products to $44.3 billion, a 99% increase since the start of 2023.

Blockchain equity ETFs also saw their highest inflows since July 2022 at $14 million. Their year-to-date flows have now turned positive at $11 million after substantial outflows for most of 2022.

ETH is up 1.7% over the past 24 hours, according to CoinGecko.

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