The recent market slump on August 5 saw institutional investors flocking to Ethereum exchange-traded products (ETPs) as money returned to crypto funds. According to CoinShares’ weekly Digital Asset Fund Flows report published on August 12, crypto asset investment products received a total of $176 million in inflows for the week ending August 11.
The report highlighted that Ether (ETH) funds were the biggest beneficiaries of the market correction, attracting $155 million in inflows last week, which accounted for approximately 88% of the total inflows. In terms of monthly performance, Ether funds also took the lead with $150 million in inflows recorded so far this month.
This surge in inflows brings the year-to-date inflows for ETH funds to $862 million, which is the highest since 2021. According to CoinShares, this increase has been largely driven by the recent launch of US spot-based ETFs.
CoinShares’ report also noted that US-based spot Ether ETFs experienced their first week of inflows since their launch in late July. The nine newly launched products recorded overall net inflows of around $105 million for the week beginning August 5.
On the other hand, Bitcoin ETPs only managed to attract $13 million in inflows for the week and have experienced outflows of $366 million month-to-date, as reported by CoinShares. Notably, short Bitcoin ETPs saw their largest outflows since May 2023, amounting to $16 million. This has resulted in a significant decrease in assets under management (AUM) for short positions, reaching its lowest level since the beginning of the year, indicating a substantial investor exit.
In comparison, multi-asset or altcoin funds outperformed Bitcoin ETPs with an inflow of $18.3 million for the period.
Since the major correction on August 5, crypto markets have witnessed a recovery of around 20%, with the total capitalization returning to $2.2 trillion by August 13. Additionally, the total AUM of institutional investment products has also recovered to $85 billion after a market rout wiped out over $20 billion.
Meanwhile, ETH prices have rebounded by 23% since dropping below $2,200 on August 5, surpassing $2,700. In contrast, BTC has recovered around 19% since its slump below $50,000.