Ethereum ETFs see $2.2B in inflows as Bitcoin gains political backing Ethereum ETFs see $2.2B in inflows as Bitcoin gains political backing
Ethereum ETFs pushed trading volume to May highs amid record inflows for crypto products.
2 min read
Updated: Jul. 29, 2024 at 2:01 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
CoinShares revealed that digital asset investment products experienced net inflows of $245 million last week.
According to the company’s weekly report, the trading volume for exchange-traded products (ETPs) rose to its highest level since May, at $14.8 billion, thanks to the launch of spot Ethereum ETFs in the US.
Total assets under management (AUM) for crypto ETPs increased to $99.1 billion, and their year-to-date inflows reached a record $20.5 billion.
Bitcoin attracts renewed confidence
Bitcoin enjoyed inflows of $519 million last week, bringing its total flows for the month to $3.6 billion and for the year to $19 billion.
James Butterfill, the head of research at CoinShares, attributed the inflows to renewed confidence in the asset, which has been the subject of recent discussions about being a reserve asset for the US government.
During the Bitcoin conference in Nashville, US politicians, including Republican Presidential Candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis, proposed making Bitcoin a strategic Treasury asset.
Notably, Senator Lummis introduced a bill that would see the US reserve accumulate 1 million BTC over five years. On the other hand, Trump vowed to make the US “a Bitcoin superpower” and ensure the government never sells the 210,000 BTC it already holds.
Ethereum ETFs
Meanwhile, the debut of Ethereum ETFs resulted in the largest inflows for the digital asset since December 2020. According to the CoinShares report, the products saw inflows totaling $2.2 billion, which resulted in a 542% increase in trading volumes.
Butterfill said:
“This figure is somewhat controversial as Grayscale seeded its new Mini Trust ETF (the week prior) with capital from its incumbent closed-end trust ($1 billion), which may help explain the steady stream of outflows in recent years.”
He also noted that the flows were impacted by Grayscale’s existing ETHE fund, which saw $1.5 billion in outflows, leading to a net outflow of $285 million for Ethereum ETPs.
Butterfill added that these outflows were similar to those seen in the firm’s Bitcoin trust in January 2024 after the Securities and Exchange Commission (SEC) approved the ETFs for trading.
Mentioned in this article
Bitcoin 
Ethereum 
CoinShares 
Grayscale Investments Grayscale Ethereum Mini Trust 
Grayscale Bitcoin Trust Grayscale Ethereum Trust 
Donald Trump 
Cynthia Lummis Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,329.85
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Ethereum Mini Trust (Ticker: ETH) is a pioneering investment vehicle designed to provide investors with exposure to Ethereum (ETH) through a regulated security format.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
The Grayscale Ethereum Trust (ETHE) by Grayscale is an investment vehicle designed to offer investors exposure to Ethereum, one of the leading cryptocurrencies by market capitalization.
A businessman, politician, and media personality, Donald John Trump served as the 45th president of the United States from 2017 to 2021.
Cynthia Lummis, known for her pro-crypto views, is a United States Senator from the great State of Wyoming.