Crypto investment products saw impressive inflows last week, totaling $270 million. However, Bitcoin experienced significant outflows of $457 million, its first major pullback since early September. Meanwhile, Ethereum inflows reached $634 million.
XRP also hit its record high of $95 million in inflows, likely driven by buzz about a potential US ETF. According to CoinShares, the advent of US options did not appear to make much difference in ETP volumes. A total $22 billion was seen this week versus $34 billion the prior week. The total YTD inflow is at a record level of $37.3 billion.
The US-led regionally with inflows of $266 million; Germany and Hong Kong were second and third with $12.3 million and $39 million, respectively. Smaller outflows were evident for Switzerland and Canada, posting $26 million and $10 million, respectively.
The outflows from Bitcoin were likely due to profit-taking after testing the key psychological mark of $100,000. Inflows for Ethereum, meanwhile, have pushed this year’s total inflows to $2.2 billion, topping its record of $2 billion in 2021. That would signal that investors are increasingly confident.
Market sentiment signals further Growth for Ethereum
The rally in Ethereum continues to gather steam in the futures market. Funding rates, a proxy for tracking sentiment, have risen sharply. While they remain below levels seen at Ethereum’s previous all-time high of $4,900, the trend does suggest growing bullishness.
Investors seem confident about Ethereum’s new high, but the funding rate is still quite far from full growth before market risks amplify.
While this looks optimistic, history has often shown that if funding rates rise too quickly, the market corrects itself once in a while. Either way, the next couple of weeks will tell whether this sentiment can continue being bullish.
