Recent data shows that Ethereum investment products attracted $1.59 billion in the past week, leading the digital asset market and prompting discussions about a potential 'altcoin season'.
Record Inflows for Ethereum
In the past week, Ethereum investment products saw inflows of $1.59 billion, marking the second-largest total on record. The broader digital asset market recorded total inflows of $1.9 billion, maintaining a positive trend for 15 consecutive weeks. Month-to-date flows reached $11.2 billion, significantly above the $7.6 billion seen post-US elections in December 2024.
Is an Altcoin Season Approaching?
According to the latest CoinShares report, Ethereum investment products have seen $7.79 billion in inflows so far this year, exceeding the total for all of 2023. In contrast, Bitcoin recorded $175 million in outflows, reflecting a shift in investor interest and potentially indicating the onset of an 'altcoin season'. Other altcoins like Solana and XRP saw notable inflows of $311 million and $189 million respectively. However, some assets such as Litecoin and Bitcoin Cash experienced outflows, highlighting the selective nature of inflows.
Comparing ETF Inflows for ETH and BTC
Ethereum is nearing the $4,000 mark for the first time since December, driven by strong momentum and spot ETH ETF inflows outpacing Bitcoin for seven consecutive days. Research indicates that Ethereum's smaller market cap allows it to react more significantly to changes in capital flows compared to Bitcoin. While Bitcoin remains resilient, absorbing a recent sell-off of 80,000 BTC with minimal volatility, its dominance remains stable at 60%, reflecting its role as a store-of-value but also leaving room for ETH and other majors to gain ground.
With the positive dynamics of capital inflows into Ethereum and growing interest in altcoins, a potentially significant turning point in the digital asset market is observed. However, caution is warranted regarding possible price corrections in the near term.