cryptopotato.com
Ethereum investment products saw $1.59 billion in inflows last week. This was the second-largest weekly total on record as it led all digital assets in fund attraction. The broader digital asset market logged $1.9 billion in total inflows for the week, extending its positive run to 15 straight weeks.
Month-to-date flows reached $11.2 billion, which was well above the $7.6 billion seen post-US election in December 2024.
Is Altcoin Season Finally Here?
According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Ethereum investment products have seen $7.79 billion in inflows so far this year, surpassing the total for all of 2023.
On the other hand, Bitcoin recorded $175 million in outflows as evidenced by a shift in investor interest. The divergence has sparked speculation that an “altcoin season” may be underway.
Further validating this view, Solana and XRP saw strong weekly inflows of $311 million and $189 million, respectively. Other altcoins also gained modest traction. SUI also brought in $8 million. Meanwhile, Cardano and Chainlink attracted modest inflows of $1.3 million and $0.5 million, respectively, during the same period.
Altcoin inflows, however, appear selective as many other assets showed limited traction. Litecoin and Bitcoin Cash posted outflows of $1.2 million and $0.66 million. CoinShares explained that the inflows may be driven by optimism over potential US ETF approvals rather than a broad altcoin market rally.
$ETH ETF Inflows Outrun $BTC
Ethereum is approaching the $4,000 level for the first time since December. The uptrend is driven by strong momentum and spot $ETH ETF inflows that have outpaced Bitcoin for seven straight days. With $ETH’s market cap just a fifth of $BTC’s, smaller capital flows can have a greater impact, QCP Capital explained, in its latest note.
While $ETH grabs headlines, $BTC remains resilient and has even absorbed a recent 80,000 $BTC sell-off with minimal volatility. $BTC dominance is stable at 60%, which reflects its continued role as a store-of-value, but also leaves room for $ETH and other majors to gain ground.
Derivatives data, however, suggest near-term caution. QCP Capital found that Perpetual Open Interest is at yearly highs, and funding rates exceed 15% across major exchanges. Some large players are already taking profits, and options positioning hints at possible resistance around $4K for $ETH and $120K for $BTC. Despite this, strong narratives and macro support, dip-buying behavior appears intact for both assets.