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Cryptocurrency investment products tracking Ethereum and others recorded another week of outflows last week, albeit at a lower volume, extending the streak of outflows to three weeks in a row. Digital investment products saw outflows worth $30 million last week.
However, this outflow deviated from the trend. We usually noticeWith Bitcoin on the decline, most of the movement is coming from Ethereum-based investment products. In particular, the latest CoinShares report shows that institutional investors pulled $60.7 million from Ethereum-based investment products in just one week, the largest so far this year.
Ethereum leads outflows
Latest CoinShares Crypto Fund Flows weekly report Indicates institutional investor sentiment regarding Bitcoin Turn to bullish 1. It is worth noting that Bitcoin-based products recorded inflows of $10 million last week. While this is small compared to the normal level of inflows that crypto assets typically see, the fact that they were inflows indicates continued bullish sentiment regarding Bitcoin despite the poor price performance last week.
On the other hand, the same cannot be said about EthereumInstitutional investor sentiment toward the altcoin king appears to be waning as Ethereum exchange-traded funds continue to roll out. The Ethereum-based coin saw outflows of $61 million last week, the largest since August 2022.
This means that the asset has lost $119 million in institutional investment in the past two weeks, making it the worst performing asset to date in terms of net inflows. This is supported by data from CoinShares, which shows that Ethereum has seen outflows of $25 million so far. Furthermore, the data indicates that Ethereum is the only digital asset to have seen a net outflow since the start of the year.
All other digital asset products recorded inflows last week. Multi-asset products led the charge with $17.9 million inflows. Bitcoin came in second with $10 million inflows. Solana, Litecoin, XRP, and Chainlink also saw minor inflows of $1.6 million, $1.4 million, $0.3 million, and $0.6 million, respectively. This influx of funds suggests that institutional investors are still willing to put their money into altcoins despite the poor price performance of most of them last week.
Reflecting the bullish sentiment, short-term Bitcoin products saw outflows of $4.2 million. Trading volumes also rose 43% week-on-week to $6.2 billion, but remained well below the $14.2 billion weekly average this year.
According to CoinShares, most providers saw minor inflows, though most of this was offset by Grayscale’s $153 million outflow. In terms of region, the US again dominated with $43 million. Brazil and Australia followed with $7.6 million and $2.9 million inflows, respectively. On the other hand, Germany, Hong Kong, Canada, Switzerland, and Sweden saw outflows of $28.5 million, $23.2 million, $14.4 million, $13.3 million, and $4.3 million, respectively.
Featured image created using Dall.E, chart from Tradingview.com
