Investor Appetite for Digital Assets Remains Strong Amid Volatility
Cryptocurrency investment products saw a strong rebound in institutional demand last week, attracting $2.48 billion in inflows despite a sharp decline in Bitcoin and Ethereum prices, according to data from CoinShares. The inflows come after $1.4 billion in outflows the previous week, signaling renewed investor confidence in digital assets even amid market turbulence.
Bitcoin and Ethereum Prices Under Pressure
Despite the positive inflow trend, Bitcoin (BTC) struggled to maintain momentum, slipping below $108,000 after briefly trading above $113,000 earlier in the week. Similarly, Ethereum (ETH) dropped under $4,300, down from highs above $4,600, mirroring Bitcoin’s volatility.
Ether ETFs Lead Institutional Demand
Spot Ether ETFs dominated the market, recording $1.4 billion in inflows, nearly double the $748 million attracted by Bitcoin investment products. This highlights growing institutional interest in Ethereum-based products, particularly after recent ETF approvals and rising adoption in decentralized finance (DeFi).
However, both Bitcoin and Ether ETFs experienced outflows on Friday, ending their multi-day inflow streaks—six days for Ether and four for Bitcoin—according to SoSoValue data.
Beyond the top two cryptocurrencies, Solana (SOL) and XRP continued to attract strong inflows on optimism over potential U.S. ETF launches. Solana investment products recorded $177 million, while XRP saw $134 million in institutional inflows last week.
Market Context
While last week’s inflows were impressive, they remain below the $4.4 billion record set in July. Analysts believe the surge reflects strategic accumulation by institutional investors, who see current price levels as an opportunity to increase exposure ahead of potential market catalysts.
With digital asset ETFs driving institutional adoption, the coming weeks will be critical in determining whether inflows sustain despite price volatility.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.