Digital-asset funds have attracted capital over the past two weeks, albeit at a slower pace as investors remain cautious after the crypto crash in May. It appears that investors are warming up to Ethereum (ETH) products, which saw a third consecutive week of inflows totaling $11.7 million, according to a report by CoinShares.
Overall, net inflows to digital asset funds totaled $2.9 million for the week ending July 9, down from $4 million during the previous week. Fund flows have weakened following a period of strong investor demand during bitcoin’s rally in Q4 2020.
Minor outflows were seen in bitcoin investment products totaling $7 million last week, which coincided with slowing trading volumes, according to CoinShares.
“In recent weeks there has been a regional divide in bitcoin (BTC) inflows, with North American providers seeing consistent inflows while their European counterparts have continued to see outflows, suggesting a geographic divergence in sentiment is present.”
Multi-asset investment products were the most popular last week with inflows totaling $1.2 million, and now represent 16.5% of total assets under management, according to CoinShares.
Aside from Ethereum, investors have also flocked to other altcoins such as Binance and Cardano (ADA), which saw inflows of $0.4 million and $0.6 million respectively.
Increased altcoin flows, although small compared to bitcoin, implies that investors are starting to diversify across their digital asset holdings.