Ethereum ETFs see $2.2B in inflows as Bitcoin gains political backing

CoinShares revealed that digital asset investment products experienced net inflows of $245 million last week.

According to the company’s weekly report, the trading volume for exchange-traded products (ETPs) rose to its highest level since May, at $14.8 billion, thanks to the launch of spot Ethereum ETFs in the US.

Total assets under management (AUM) for crypto ETPs increased to $99.1 billion, and their year-to-date inflows reached a record $20.5 billion.

Bitcoin attracts renewed confidence

Bitcoin enjoyed inflows of $519 million last week, bringing its total flows for the month to $3.6 billion and for the year to $19 billion.

James Butterfill, the head of research at CoinShares, attributed the inflows to renewed confidence in the asset, which has been the subject of recent discussions about being a reserve asset for the US government.

During the Bitcoin conference in Nashville, US politicians, including Republican Presidential Candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis, proposed making Bitcoin a strategic Treasury asset.

Notably, Senator Lummis introduced a bill that would see the US reserve accumulate 1 million BTC over five years. On the other hand, Trump vowed to make the US “a Bitcoin superpower” and ensure the government never sells the 210,000 BTC it already holds.

Ethereum ETFs

Meanwhile, the debut of Ethereum ETFs resulted in the largest inflows for the digital asset since December 2020. According to the CoinShares report, the products saw inflows totaling $2.2 billion, which resulted in a 542% increase in trading volumes.

Butterfill said:

“This figure is somewhat controversial as Grayscale seeded its new Mini Trust ETF (the week prior) with capital from its incumbent closed-end trust ($1 billion), which may help explain the steady stream of outflows in recent years.”

He also noted that the flows were impacted by Grayscale’s existing ETHE fund, which saw $1.5 billion in outflows, leading to a net outflow of $285 million for Ethereum ETPs.

Butterfill added that these outflows were similar to those seen in the firm’s Bitcoin trust in January 2024 after the Securities and Exchange Commission (SEC) approved the ETFs for trading.