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Ethereum exchange-traded products (ETPs) have become the top choice for institutional investors as the cryptocurrency market recovers from the August 5th slump. CoinShares  weekly Digital Asset Fund Flows report, published on August 12th, revealed a significant return of funds to crypto investments, with Ethereum taking the lead. 

Surge in Ethereum Inflows 

The report noted that Ether (ETH) funds attracted $155 million last week, accounting for 88% of total crypto inflows. This trend has continued throughout the month, with Ethereum funds bringing in $150 million in inflows. 

Year-to-date, ETH funds have accumulated $862 million, the highest since 2021, driven by the recent launch of U.S. spot-based ETFs. 

Spot Ether ETFs Gain Traction 

On August 12th that U.S.-based spot Ether ETFs saw positive inflows during their first week, following their late July launch. The nine new products had net inflows of approximately $105 million, indicating strong investor interest in Ethereum. 

Bitcoin ETPs Lagging 

In contrast, Bitcoin ETPs only managed $13 million in inflows for the week, with $366 million in outflows month-to-date. Short Bitcoin ETPs recorded their largest outflows since May 2023, totaling $16 million, reflecting a significant investor exit. 

Altcoins and Multi-Asset Funds Outperform 

Altcoins and multi-asset funds outperformed Bitcoin ETPs, with inflows of $18.3 million, showing growing interest in diversified crypto assets beyond Bitcoin. 

Market and ETH Price Recovery 

The broader cryptocurrency market has rebounded by about 20% since the August 5th correction, with total market capitalization returning to $2.2 trillion by August 13th. Institutional investment products also recovered, with total AUM rising to $85 billion after losing over $20 billion during the market downturn. 

Ethereum prices have surged 23% after dropping below $2,200 on August 5th, climbing back above $2,700. In comparison, Bitcoin has recovered about 19% from its slump below $50,000. 

As the market rebounds, Ethereum continues to attract significant investment, outpacing Bitcoin and other assets. The launch of spot Ether ETFs and strong institutional interest have solidified Ethereum’s position in the ongoing recovery of the cryptocurrency market.