cryptoglobe.com
Over the past week cryptocurrency investment products saw $245 million of inflows, with Bitcoin seeing inflows of $519 million to bring its month-to-date inflows to $3.6 billion, a figure dwarfed by the $2.2 billion in inflows the newly issued spot Ethereum exchange-traded funds saw.
According to CoinShares’ Digital Asset Fund Flows report, the newly launched spot Ether ETFs saw some of the “largest inflows since December 2020,” while trading volumes in $ETH exchange-traded products (ETPs) surged 542% with their launch.
The report reads:
This figure is somewhat controversial as Grayscale seeded its new Mini Trust ETF (the week prior) with capital from its incumbent closed-end trust (~US$1bn), which may help explain the steady stream of outflows in recent years.
However, over the past week Ethereum ETPs saw $284.9 million in outflows. Which were partly justified by the seeding of Grayscale’s new Mini Trust ETF with capital from its closed-end trust, the Grayscale Ethereum Trust, which also saw investors cash out.
Notably, exchange-traded products offering exposure to multiple cryptocurrencies saw $8.7 million of inflows in the last week, while those offering exposure to Cardano saw $1.2 million of inflows, above the $500,000 for XRP products and $400,000 for Chainlink products.
Solana-focused exchange-traded products saw a $2.7 million outflow over the past week. The $2.2 billion inflows into Ethereum-focused products come shortly after the launch of spot Ether ETFs in the United States, and at a time in which whale activity has been surging on-chain.
According to data from IntoTheBlock, on-chain data reveals a surge in activity among Ethereum’s largest investors. Whale transactions — those exceeding $100,000 — reached a monthly high on July 24, with a staggering 3.5 million $ETH moved in a single day, with the record being broken the next day after 3.68 million $ETH ($12.1 billion) were moved in a single day.
While this frenzied activity might suggest accumulation, a closer look at the data paints a more complex picture. While inflows to large wallets increased by 12.42% over the past week, outflows soared by a more substantial 38.17%, resulting in a net outflow of 100.65%. This suggests that whales are, on balance, moving Ethereum off trading platforms.
Featured image via Unsplash.