Ethereum (ETH) Dominates Digital Asset Inflows Amid Market Volatility

Ethereum Surpasses Expectations with Strong Inflows

Ethereum has emerged as the frontrunner in digital asset inflows, showcasing its strongest performance since December 2024. According to CoinShares, the digital asset investment products experienced a total inflow of US$286 million last week, contributing to a cumulative seven-week total of US$10.9 billion.

Despite the significant inflows, the total assets under management (AuM) saw a decline from an all-time high of US$187 billion to US$177 billion by the weekend. This decrease was attributed to market volatility spurred by uncertainty over US tariffs, affecting overall asset valuation.

Global Investment Trends and Regional Shifts

Investment activity was notably vibrant across various regions, with the United States maintaining a dominant position by recording US$199 million in inflows. Additionally, Germany, Australia, and Hong Kong reported substantial inflows of US$42.9 million, US$21.5 million, and US$54.8 million, respectively. Hong Kong, in particular, achieved its strongest weekly inflow since the launch of exchange-traded products over a year ago.

Conversely, Switzerland saw outflows amounting to US$32.8 million, marking it as one of the few countries experiencing a net outflow position year-to-date.

Bitcoin Faces Challenges Amid Legal Developments

Bitcoin, which initially started the week with strong inflows, encountered a reversal mid-week. This shift followed a New York Court decision declaring US tariffs as illegal, leading to minor outflows of US$8 million by the week's end. This marked the first outflow following six consecutive weeks of inflows totaling US$9.6 billion.

Outlook and Future Prospects

The digital asset market continues to navigate through global economic uncertainties, with Ethereum leading the inflow momentum. The ongoing developments in the regulatory landscape, particularly concerning US tariffs, could further influence investor sentiment and market dynamics in the coming weeks.