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Continuing delays by the US Securities and Exchange Commission in approving Ethereum exchange-traded funds (ETFs) for trading has led to… Ethereum ETFs post biggest outflows in two years
according to Coin SharesThe latest digital asset fund a reportThese outflows led to a third consecutive week of negative inflows of $30 million for global cryptocurrency-related investment products.
However, James Butterville, head of CoinShares Research, noted that last week’s modest inflow indicates a “significant cessation of outflows.”
Meanwhile, negative sentiment had little impact on the trading volume of these products, which rose 43% week-on-week to $6.2 billion. However, this is still well below the weekly average of $14.2 billion.
Ethereum sees highest outflows in two years
Ethereum outflows hit $61 million last week, the highest since August 2022. Over the past two weeks, ETH outflows totaled $119 million, making it the worst performing asset on a yearly basis, with a negative net inflow of $25 million.
Butterville attributed the outflows to negative investor sentiment surrounding the current uncertainty regarding when Ethereum ETF products will begin trading. On June 28, Bloomberg Funds analyst Eric Balchunas said male Approval of the financial instruments could be delayed further until the week of July 8 as the SEC and some applicants are still sorting out documents.
Bitcoin has benefited from this shift in sentiment, with inflows totaling $10 million last week. The CoinShares report indicated that most… Bitcoin ETF providers, including BlackRock’s IBIT and… FBTC from FidelityIt recorded modest inflows, partially offsetting the outflow of $153 million from Grayscale’s GBTC Fund.
The positive sentiment also led to $4.2 million in outflows from Bitcoin short positions. Moreover, market watchers noted that Bitcoin price struggle It may have attracted a lot of attention from these bearish traders.
Large-cap altcoins like Solana and Litecoin also saw minor inflows of $1.6 million and $1.4 million, respectively. Meanwhile, Butterfill added:
“Despite the positive sentiment towards cryptocurrencies this year, blockchain stocks have suffered $545 million in outflows this year, representing 19% of assets under management.”
