Bitcoin Gains $284M Inflow While Ethereum Faces Five Weeks of Outflows

• Bitcoin led inflows with $284M, while Ethereum saw outflows, marking five consecutive weeks of investor withdrawals.
• Solana outperformed Ethereum, attracting $3.2M in inflows, indicating rising investor interest in alternative crypto assets.

According to a recent CoinShares report, net inflows into digital asset investment products have occurred for the second week running. This pattern, which appears to be driven by the Federal Open Market Committee’s (FOMC) decision to cut interest rates by 50 basis points, has resulted in a total inflow of $321 million.

Bitcoin Dominates While Ethereum Faces Persistent Investor Outflows 

Bitcoin led the group with $284 million in inflows, confirming its continued dominance in the crypto investment industry. In contrast, Ethereum experienced outflows for five weeks in a row, with $28.5 million leaving the market, indicating a potential shift in investor sentiment away from the second-largest cryptocurrency.

Source: Coinshares

While Ethereum suffered, Solana emerged as a surprising rival, outperforming Ethereum in terms of inflows, grabbing $3.2 million in just the last week. This shift could indicate increased investor trust in Solana’s future, possibly due to its scalability and lower transaction fees than Ethereum.

The growing inflows into Solana indicate that investors are looking for alternatives that have strong infrastructure and growth potential, diversifying their portfolios in a market previously dominated by Bitcoin and Ethereum.

The inflow of funds has had a favorable influence on total assets under management (AuM), which increased by an astonishing 9%, reflecting a larger trend of increasing interest in digital assets. Total investment product volumes also grew to $9.5 billion, up 9% from the prior week.

This increase demonstrates the growing institutional and retail investor interest in cryptocurrencies as viable financial assets, despite persistent market volatility and regulatory uncertainty.

Regional Inflows Highlight Diverse Interest and Regulatory Landscape in Crypto 

Furthermore, the regional inflows were mixed. The United States led the way with inflows of $277 million, demonstrating a high market for digital assets in the country. Switzerland followed with the second-largest weekly inflows of $63 million, the biggest this year, bolstering its reputation as a cryptocurrency-friendly state.

Source: Coinshares

However, not all regions experienced an increase; Germany, Sweden, and Canada experienced outflows of $9.5 million, $7.8 million, and $2.3 million, respectively. These regional variances underscore the diverse levels of interest and regulatory frameworks across countries, with some markets demonstrating greater resilience and optimism for digital assets than others.

On the other hand, CNF has revealed an intriguing event in the Bitcoin space: two dormant Bitcoin wallets that had been idle for 15 years recently reactivated, sending a total of 100 BTC valued more than $6.24 million.

This reawakening of long-dormant wallets has prompted interest and discussion in the crypto community, with many questioning the motivations behind the rapid movement of such a large sum of Bitcoin.

Furthermore, as we previously highlighted, Asia is at the forefront of global crypto growth, with over 326.8 million bitcoin owners driving mainstream acceptance across the region. Clear restrictions and viable use cases make cryptocurrencies more accessible to the general public, accelerating adoption.

This proactive approach to developing legal frameworks has not only increased investor trust, but has also hastened the integration of cryptocurrencies into numerous sectors, ranging from finance to e-commerce, consolidating Asia’s position as a digital asset market leader.

Meanwhile, BTC is currently trading at $63,463.87, up 8.42% over the last seven days. Despite this growth, Bitcoin’s market dominance has slightly decreased, from 57% to 56.3%.