Ethereum investment products saw $1.59 billion in inflows last week. This was the second-largest weekly total on record as it led all digital assets in fund attraction. The broader digital asset market logged $1.9 billion in total inflows for the week, extending its positive run to 15 straight weeks.
Month-to-date flows reached $11.2 billion, which was well above the $7.6 billion seen post-US election in December 2024.
Is Altcoin Season Finally Here?
According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, Ethereum investment products have seen $7.79 billion in inflows so far this year, surpassing the total for all of 2023.
On the other hand, Bitcoin recorded $175 million in outflows as evidenced by a shift in investor interest. The divergence has sparked speculation that an “altcoin season” may be underway.
Further validating this view, Solana and XRP saw strong weekly inflows of $311 million and $189 million, respectively. Other altcoins also gained modest traction. SUI also brought in $8 million. Meanwhile, Cardano and Chainlink attracted modest inflows of $1.3 million and $0.5 million, respectively, during the same period.
Altcoin inflows, however, appear selective as many other assets showed limited traction. Litecoin and Bitcoin Cash posted outflows of $1.2 million and $0.66 million. CoinShares explained that the inflows may be driven by optimism over potential US ETF approvals rather than a broad altcoin market rally.
ETH ETF Inflows Outrun BTC
Ethereum is approaching the $4,000 level for the first time since December. The uptrend is driven by strong momentum and spot ETH ETF inflows that have outpaced Bitcoin for seven straight days. With ETH’s market cap just a fifth of BTC’s, smaller capital flows can have a greater impact, QCP Capital explained, in its latest note.
While ETH grabs headlines, BTC remains resilient and has even absorbed a recent 80,000 BTC sell-off with minimal volatility. BTC dominance is stable at 60%, which reflects its continued role as a store-of-value, but also leaves room for ETH and other majors to gain ground.
Derivatives data, however, suggest near-term caution. QCP Capital found that Perpetual Open Interest is at yearly highs, and funding rates exceed 15% across major exchanges. Some large players are already taking profits, and options positioning hints at possible resistance around $4K for ETH and $120K for BTC. Despite this, strong narratives and macro support, dip-buying behavior appears intact for both assets.
