• Digital asset investments see $296.4M in Ethereum inflows, while Bitcoin faces $56.5M in outflows.
• With $1.5B in inflows over seven weeks, Ethereum showcases strong investor confidence despite market uncertainty.
• XRP continues to experience outflows for the third week, reflecting a drop in interest in altcoins.

Digital asset investment products recorded inflows of just $224 million last week. Among crypto investments, Ethereum gathered the highest figure of $296.4 million. On the other hand, Bitcoin had $56.5 million in funds leaving its ecosystem. A decline in inflows is happening as policy decisions remain uncertain. Some investors are taking a cautious approach as they await the Federal Reserve’s response to inflation.

Source: CoinShares

The rise in Ethereum inflows shows that it is highly appealing to people at this time. There were inflows into Ethereum funds for seven straight weeks, coming to a total of $1.5 billion last week. This makes up almost 10.5% of all the assets the firm oversees. 

Even though the broader market is uncertain, Ethereum’s performance proves investors feel confident about it. Since inflation is being monitored by the Federal Reserve, Ethereum is still a leading choice for investors. At the same time, money keeps flowing out of Bitcoin. For the second week in a row, Bitcoin saw outflows of $56.5 million. For the second time in a row, the short-bitcoin products faced outflows. 

Because of the unpredictable nature of monetary policy, Bitcoin investors are being careful. Although Bitcoin is still leading the digital assets, its current performance proves that policy uncertainty weighs on its value.

Although Ethereum received many inflows, altcoins received fewer. People have invested $1.1 million in SuiNetwork. For the third week in a row, XRP experienced outflows, equal to $6.6 million. This shows XRP’s popularity has continued to decrease. Altcoin investments have declined due to the overall uncertainty in the market.

Source: CoinShares

About $175 million of digital assets were invested in the United States throughout the period. Next, Germany gave out $47.8 million, and Switzerland provided $15.7 million. Only small inflows of $9.8 million and $6.5 million were recorded in Canada and Australia. 

Still, Brazil and Hong Kong recorded small losses of foreign capital. Hong Kong’s outflows stopped record inflows in the region.

Source: CoinShares

The deceleration in digital asset volumes shows that most investors are cautious due to unclear government plans. Although Ethereum succeeds, Bitcoin, along with other cryptocurrencies, is facing difficulties. With the Federal Reserve reserving its next move, the length of Ethereum’s reign is not clear. Over the next several weeks, significant developments are expected in the digital asset market.

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