Ether Investment Products See Record Outflows Since 2022 Read CoinChapter.com on Google News
NAIROBI (CoinChapter.com) — Ether investment products experienced significant withdrawals in the final week of June, marking the largest outflow since August 2022. CoinShares’ weekly analysis revealed that between June 24-29, investors pulled $61 million from Ether funds.
This brought the total outflows for the past two weeks to $119 million, making June’s total balance a negative $37 million. Year-to-date, Ether funds have faced net withdrawals of $25 million, positioning them as the worst-performing asset in terms of net flows.
Outflows Continue Despite ETF Approvals
Despite the US Securities and Exchange Commission (SEC) approving Ether exchange-traded funds (ETFs) in May, the cryptocurrency’s price fell by 8.7% in June.
Bloomberg ETF analysts Eric Balchunas and James Seyffart noted that the SEC requested prospective issuers resubmit their S-1 forms by July 8, delaying the debut of eight approved Ethereum ETFs to mid-July or later.
Despite the setbacks, Bitwise predicted that Ethereum ETFs could attract $25 billion by the end of 2025. However, these positive forecasts have yet to materialize as Ether investment products struggle to retain investor interest.
Weekly crypto asset flows in USD. Source: CoinShares report.
CoinShares’ report indicated that the majority of Bitcoin ETF providers saw modest inflows, contrasting with Ether’s significant outflows. Grayscale’s Bitcoin fund, for instance, saw outflows of $153 million, but overall, Bitcoin ETFs managed a net inflow of $10 million.
Multi-asset ETPs also led inflows with $18 million, suggesting a potential shift in investor sentiment.
Mixed Inflows and Regional Variations Amid Ether Outflows
The overall performance of digital asset investment products saw a downturn due to Ether’s substantial outflows. Over the past week, multi-asset and Bitcoin ETFs led inflows, with $18 million and $10 million, respectively. Short-bitcoin products saw a rise in outflows totaling $4.2 million, indicating a possible shift in market sentiment.
Fund flows by asset. Source: CoinShares report.
Trading volumes rose by 43% week-on-week to $6.2 billion as of June 29. However, this figure remains below the $14.2 billion weekly average for the year. Among altcoins, Solana funds saw inflows of $1.6 million, while Litecoin attracted $1.4 million during the same period.
Regionally, the United States reported $43 million in inflows, with Brazil and Australia also recording positive movements of $7.6 million and $3 million, respectively. In contrast, negative sentiment prevailed in Germany, Hong Kong, Canada, and Switzerland, with outflows of $29 million, $23 million, $14 million, and $13 million, respectively.
Digital asset funds flow by exchange country. Source: CoinShares report.
Despite positive sentiment for cryptocurrencies earlier this year, blockchain equities have suffered. This year, $545 million has been withdrawn, representing 19% of the market capitalization.
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