• Digital asset products ended the week with $572M in inflows after a shaky start.
• Ethereum posted $268M in inflows, setting a year-to-date record high.
• ETH’s short-term risks contrast with strong mid-term fundamentals.

Digital asset investment products swung back into positive territory last week, closing with $572 million in net inflows, according to the latest figures from CoinShares.

The week began on a negative note, with $1 billion pulled from the market. Concerns over US economic growth, triggered by weak payroll numbers, weighed heavily on sentiment.

Midweek, momentum shifted. The US government announced that digital assets could now be included in 401(k) retirement plans. That news sparked $1.57 billion in inflows during the latter part of the week, reversing earlier losses.

Even so, trading activity in exchange-traded products was 23% lower than the previous month, a slowdown likely linked to quieter summer trading.

The United States dominated regional inflows with $608 million, while Canada followed at $16.5 million. Europe saw a more cautious mood, with Germany, Sweden, and Switzerland combining for $54.3 million in outflows.

Also Read: Ethereum’s institutional Interests Surpasses Bitcoin

Ethereum Breaks New Records

Ethereum products drew the largest inflows of the week, with $268 million added. This lifted year-to-date inflows to $8.2 billion, the highest on record. Rising prices pushed total assets under management for Ethereum to an all-time high of $32.6 billion, an 82% increase since January.

Bitcoin also returned to positive territory after two straight weeks of losses, recording $260 million in inflows. Short Bitcoin products experienced $4 million in outflows. Among altcoins, Solana led with $21.8 million in new capital, followed by XRP with $18.4 million and Near with $10.1 million.

Ethereum’s Near-Term Risks, Long-Term Strength

Data from CryptoQuant shows Ethereum testing a key resistance range between $4,020 and $4,060. The all-exchange estimated leverage ratio stands at 0.68, near historic highs, indicating elevated risk.

Binance’s lower ratio of 0.52 suggests heavier leverage on other platforms. Large net inflows to Binance could create localized selling pressure if liquidations or arbitrage occur.

Institutional interest remains strong despite near-term caution. US spot Ethereum ETFs posted a record $726.6 million in daily inflows, led by BlackRock and Fidelity.

Combined ETF holdings now exceed 5 million ETH, worth about $20.3 billion. Ark Invest added $108.57 million worth of ETH, while Fundamental Global committed $200 million to its treasury.

Ethereum’s network metrics also point to growth. Transaction volumes are at record levels, staking activity is climbing, and upcoming upgrades such as Pectra and Fusaka aim to improve scalability and reduce costs.

While short-term volatility risks persist, the market structure for Ethereum remains firmly supported by strong institutional demand and expanding network utility.

Also Read: Ethereum Breaks Past $4K, Back to 2021 Levels but Stronger Than Ever