After five consecutive weeks of outflows, weekly digital asset investment products have seen a rebound, with traders in the U.S. and Hong Kong deploying more capital than withdrawing.

According to CoinShares, a total of $130 million flowed into these crypto investment vehicles, with the United States accounting for the majority of inflows last week. Notably, dwindling outflows from Grayscale Investments cushioned activity in the U.S., with the Grayscale Bitcoin Trust (GBTC) experiencing its lowest weekly withdrawals in five months at $171 million.

In Hong Kong, Bitcoin (BTC) exchange-traded funds (ETFs) attracted $19 million in inflows, although this figure paled in comparison to the Wall Street offerings, which garnered $135 million across approximately 11 products. Analysts observed that despite the rebound, ETF volumes signaled a downtrend, with $8 billion in volume recorded, down from last month's weekly average of $17 billion.

CoinShares' report highlighted that ETF investors are currently less active in the crypto ecosystem, representing 22% of total volumes on trusted global exchanges, down from 31% the previous month.

While Bitcoin sentiment translated into inflows, the same cannot be said for Ethereum (ETH), the second-largest cryptocurrency by market capitalization, which experienced outflows of $14 million. CoinShares' analyst James Butterfill suggested that ETH outflows may be linked to regulatory uncertainties surrounding spot Ethereum ETFs in the United States. The delay in SEC decisions on these ETFs has heightened skepticism regarding eventual approvals.

The enforcement actions taken against Ethereum-related entities such as Consensys and Uniswap, as well as crypto operators like Robinhood, have further contributed to this uncertainty.

Bitcoin advocate Michael Saylor's assertion that Ethereum and other altcoins are unregistered crypto asset securities has echoed sentiments long suggested by the SEC through lawsuits and classification deliberations regarding ETH.

While the SEC's stance remains ambiguous, experts believe that ongoing Congressional bills and proposals may lead to greater clarity regarding which agency will oversee the crypto industry, potentially altering the current trend.