Ethereum is emerging as the preferred choice for institutional investors, even as digital asset funds saw their largest withdrawals in months, according to new data from CoinShares.
Investment products tied to cryptocurrencies recorded $143 million in outflows last week, the biggest since March.
However, trading activity rose to $8 billion, more than 50% above the yearly average, showing that investor interest remains strong even in a week of withdrawals.
The week began with a caution concerning the US Federal Reserve (Fed)’s monetary policy, leading to $210 million in outflows as investors reduced risk.
Sentiment shifted later when Fed Chair Jerome Powell gave a speech at the Jackson Hole Symposium, sparking $594million in inflows.
Analysts said this shift shows how closely digital assets now react to the same economic signals that drive stocks and bonds.
Ethereum stood out in the report, as after losing $440 million midweek it quickly rebounded with $326m in inflows, while Bitcoin continued to see net outflows of $518 million.
So far this year, Ethereum has drawn in 28% of its total assets under management, compared to just 11% for Bitcoin.
CoinShares said that this reflects a shift in investor preference, with Ethereum seen as the foundation for decentralised finance and tokenisation projects, rather than just another speculative asset.
According to CoinShares, this signals that digital assets are no longer operating in isolation, but instead they now move in response to central bank policy and global market conditions, highlighting that these assets are now a recognised part of the financial system.
