Ethereum products continue to lead, but global crypto fund inflows decelerate amid Fed policy uncertainty: CoinShares

Crypto investment products run by asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares registered another $286 million worth of net inflows globally last week, according to CoinShares data — with Ethereum-based funds again outperforming Bitcoin.

It marks the eighth consecutive week of gains, now totaling $11.3 billion. "However, there has been a noticeable deceleration amid uncertainty over monetary policy, with investors adopting a wait-and-see stance ahead of further signals from the U.S. Federal Reserve on inflation," CoinShares Head of Research James Butterfill warned in a Monday report.

Weekly crypto asset flows. Images: CoinShares.

Ethereum investment products are gaining traction

Ethereum investment products led for the second week in a row, adding $296.4 million worth of net inflows to a seven-week positive run totaling $1.5 billion — accounting for 10.5% of assets under management at the global Ethereum-based funds, Butterfill noted. "This represents the strongest run of inflows since the U.S. Election last November and marks a significant recovery in sentiment amongst investors," he said.

U.S. spot Ethereum exchange-traded funds accounted for $281.3 million of the weekly inflows, according to data compiled by The Block, with their 15-day positive streak now totaling $837.5 million.

Meanwhile, global Bitcoin-based products slumped to their second consecutive week of net outflows, with $56.5 million exiting the funds during the period. However, short-Bitcoin products also witnessed a second week of net outflows, with $4.1 million trimmed.

Other altcoin investment products were subdued, with Sui instruments attracting minor net inflows of $1.1 million, while XRP funds saw a third week of net outflows totaling $6.6 million, Butterfill noted.

Net weekly inflows were experienced broadly across regions, led by the U.S. with $175 million, followed by Germany, Switzerland, Canada, and Australia, with $47.8 million, $15.7 million, $9.8 million, and $6.5 million, respectively. Minor net outflows occurred in Brazil ($9.2 million) and Hong Kong ($14.6 million), marking the end of the latter's record inflow streak.