Ethereum Products Lead July Bounce Back: AUM Surges 45%
The crypto market has experienced significant volatility this year, but July brought a welcome resurgence, spearheaded by Ethereum. Ethereum-based investment products have been leading the bounce-back in the second half of the year.
Ethereum Investment Products Surge in July
According to CoinShares, digital asset investment products saw net inflows of $176 million last week. Investors clearly viewed recent price weakness as a buying opportunity, with Ethereum-based products taking the lead.
Ethereum investment products’ assets under management rose 44.6% to $6.57 billion this month, compared to BTC investment products, which saw their assets under management rise 16.9%. This substantial growth highlights the increasing confidence in Ethereum's potential.
Ethereum's July Performance: A Deep Dive
July’s positive seasonality could be notable for crypto investors, as bitcoin and ether have historically performed better during this month. Ethereum products have seen gains ranging from 25.9% to 37.8%.
QCP Capital analysts reported that Ethereum-based investment products have been leading the bounce-back in the second half of the year, a testament to the enduring appeal of the ETH ecosystem. To put it nicely, it has been a turbulent first half of the year, with the Ethereum ETPs lead.
Ethereum Outperforms Bitcoin: AUM Comparison
While Bitcoin-related products continued to attract the most capital, with $557 million in inflows, Ethereum-based funds saw a notable rebound. AUM for Bitcoin-based products fell 7.16% to $17.4bn whilst Ethereum-based products saw significant growth. This shift suggests a growing preference for Ethereum within the investment community.
Is ETH a Buy or Sell Now?
Ethereum’s price may face a short-term downturn due to market conditions, but long-term prospects suggest a bullish recovery. Ethereum-based products led the bounce-back in July and continued to outperform in August. This indicates a strong underlying demand and suggests that ETH could be an attractive investment opportunity, depending on your risk tolerance and investment strategy.