Cryptocurrency investment products have seen significant inflows in the past week, with Bitcoin leading the way with $519 million inflows bringing its month-to-date total to $3.6 billion. However, newly issued spot Ethereum exchange-traded funds (ETFs) saw an impressive $2.2 billion in inflows, dwarfing Bitcoin’s numbers. The latest report from CoinShares’ Digital Asset Fund Flows highlights the surging interest in Ethereum, with spot Ether ETFs seeing some of the largest inflows since December 2020.
The spike in trading volumes in Ethereum exchange-traded products (ETPs) further reinforces the growing popularity of the digital asset. However, Ethereum ETPs saw $284.9 million in outflows over the past week, partly due to Grayscale seeding its new Mini Trust ETF with capital from its closed-end trust. The Grayscale Ethereum Trust also experienced investor cashouts, contributing to the outflows in Ethereum ETPs.
Exchange-traded products offering exposure to multiple cryptocurrencies also saw significant inflows in the last week. Cardano products had $1.2 million in inflows, surpassing XRP and Chainlink products. On the other hand, Solana-focused exchange-traded products experienced outflows of $2.7 million. The $2.2 billion inflows into Ethereum products coincide with the launch of spot Ether ETFs in the United States, reflecting the current surge in whale activity on-chain.
Data from IntoTheBlock reveals a surge in whale activity among Ethereum’s largest investors, with transactions exceeding $100,000 reaching a monthly high on July 24. A record-breaking 3.68 million ETH, equivalent to $12.1 billion, was moved in a single day. While this frenzy may indicate accumulation, a deeper analysis shows a more nuanced trend. While inflows to large wallets increased by 12.42% in the past week, outflows surged by 38.17%, resulting in a net outflow of 100.65%. This suggests that whales are primarily moving Ethereum off trading platforms.
Overall, the cryptocurrency market continues to experience significant inflows into various investment products, with Ethereum leading the way in attracting investor interest. The launch of spot Ether ETFs in the US has further boosted inflows into Ethereum-focused products, while other cryptocurrencies like Cardano also saw notable inflows. However, the outflows in Ethereum ETPs indicate some investors are cashing out, possibly due to the seeding of Grayscale’s new Mini Trust ETF. The surge in whale activity suggests a dynamic market environment, with investors closely monitoring on-chain movements for insights into market trends.
