Bitcoin revenue surged by $436 million as Ethereum funds exited.

Key receivers

Digital asset investment products brought in $436m after spending $1.2bn. Bitcoin gained $436 million, while Ethereum faced outflows of $19 million amid concerns over L1's profitability.

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Bitcoin (BTC) funds recorded $436 million in inflows last week, while Ethereum (ETH) funds lost $19 million over the same period, according to asset management company CoinShares. Overall, crypto funds recorded inflows of $436 million and outflows of $1.2 billion last week.

Additionally, funds with short bitcoin positions recorded $8.5 million in runaway capital after three straight weeks of inflows. In particular, the positive flows in BTC-related products ended the 10-day outflow totaling $1.2 billion, according to the report.

Ethereum is affected by profitability concerns.

On the other hand, the weaknesses of Ethereum-related products may be related to the main profitability following the Denko reform on March 13 of this year, which significantly reduced the transaction cost of Ethereum-based layer-2 blockchains.

As a result, development data shows that the payment for storing data on Ethereum in L2 has fallen to 99.6% by 2024. Additionally, data from Token Terminal shows that Ethereum's weekly revenue is the lowest year-to-date since August 12, averaging $4.56 million.

While Ethereum struggled, Solana posted a fourth consecutive week of inflows, totaling $3.8 million. Multi-asset-based funds saw $22.8 million in revenue.

The report indicated that appetite for crypto-related investment products picked up pace late last week.

This could follow comments by former New York Fed President Bill Dudley, a move expected by the market to cut interest rates by a possible 50 basis points on September 18.

US leads imports.

Regionally, the US leads with $416 million in revenue, followed by Switzerland with $27 million in flow. Notably, Switzerland holds the second largest annual inflows of nearly $400 million.

Germany also recorded positive inflows last week, totaling $10.6 million. However, the country's net outflow is negative at $319 million by 2024.

Canada and Sweden experienced smaller outflows of $18 million and $4.6 million, respectively.

Blockchain stocks saw $105 million in inflows following the seeding and launch of several new ETFs in the US.

Trading volume in ETFs remained flat at $8 billion for the week, significantly lower than the $14.2 billion average seen so far this year.

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