Weekly inflow of funds into crypto derivatives amid market correction amounted to $176 million

What’s new? Experts of the investment company CoinShares recorded an inflow of $176 million into cryptocurrency derivatives last week. They explained the positive result by the fact that investors viewed the recent decline in asset prices as a buying opportunity. Thus, trading activity in the cryptocurrency exchange-traded products (ETPs) sector was much higher than usual at $19 billion compared to the 2024 weekly average of $14 billion.

CoinShares report

What else is known? At the same time, total assets under management of investment crypto products fell from $95 billion to $75 billion during the market correction, but then partially recovered to $85 billion.

What is unusual is that all regions of the world saw capital inflows last week. According to analysts, this indicates a positive attitude towards digital assets as a class. Most notable were the US, Switzerland, Brazil, and Canada, which recorded inflows of $89 million, $20 million, $19 million, and $12,6 million respectively. That said, the United States remains the only country to remain negative since the beginning of the month ($306 million in outflows).

CoinShares also said that the Ethereum (ETH) blockchain’s native coin benefited the most from the recent correction, with investment products based on it attracting $155 million in a week. This brings the total YTD inflows to $862 million, the best since 2021. This is largely due to the recent launch of ETH-based spot exchange-traded funds (ETFs) in the US. The regulator approved nine such products on July 23.

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As for bitcoin-based products, the week started with outflows for them, but there were significant inflows in recent days, resulting in a positive performance in the reporting period (+$13 million).

At the same time, short positions in the asset saw record outflows since May 2023 ($16 million), causing total assets under management for such products to fall to their lowest level since the beginning of the year.

Notably, in the week leading up to the large-scale correction of the crypto market, CoinShares recorded outflows from investment crypto products for the first time in a month, totaling $528 million.

During the correction on August 5, the BTC exchange rate dipped below $50 000 and ETH broke through the $2200 mark. Since then, the rates of the major cryptocurrencies have risen by about 20%.

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Earlier, it became known that the volume of venture capital funding of crypto startups grew by 2,5% over the quarter and amounted to $2,7 billion.