Cryptocurrency investment products tracking ethereum and others saw another week of outflows last week, albeit in a smaller amount, to extend the streak of outflows to three consecutive weeks. Digital investment products witnessed outflows worth $30 million last week.
However, this exit deviated from the trend. bitcoin/bitcoin-crash-not-done-coinshares/” rel=”nofollow noopener” target=”_blank”>We normally observewith bitcoin taking a step back and most of the movement coming from ethereum-based investment products. Notably, the latest CoinShares report shows that institutional investors withdrew a whopping $60.7 million from ethereum-based investment products in just one week, the most so far this year.
ethereum leads outflows
CoinShares' Latest Digital Asset Fund Flows Weekly report suggests that institutional investor sentiment regarding bitcoin is bitcoin/is-the-bitcoin-bottom-in-price/” rel=”nofollow noopener” target=”_blank”>becoming a bullish 1. It is worth noting that bitcoin-based products saw $10 million worth of inflows last week. While this is small compared to the normal level of inflows the crypto asset typically sees, the fact that there was any inflow suggests a persistent bullish sentiment regarding bitcoin despite the poor price performance last week.
On the other hand, the same cannot be said of ethereumInstitutional investor sentiment regarding the altcoin king appears to be waning as the launch of ethereum spot ETFs continues to drag on. ethereum-based cryptocurrencies saw outflows of $61 million last week, the largest since August 2022.
This means that the asset has lost $119 million in institutional investments over the past two weeks, making it the worst-performing asset so far this year in terms of net inflows. This is supported by data from CoinShares, which shows that ethereum outflows so far this year now amount to $25 million. Furthermore, the data indicates that ethereum is the only digital asset with a net outflow since the beginning of the year.
All other digital asset products saw inflows last week. Multi-asset products led the charge with inflows worth $17.9 million. bitcoin came in second with inflows worth $10 million. Solana, Litecoin, XRP, and Chainlink also witnessed minor inflows of $1.6 million, $1.4 million, $0.3 million, and $0.6 million outflows, respectively. This influx of money suggests that institutional investors are still willing to put money into altcoins despite the poor price performance of most of them last week.
Reflecting the bullish sentiment, products with short positions on bitcoin saw outflows worth $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 for the year.
According to CoinShares, most providers saw smaller inflows, although most of these were offset by Grayscale’s $153 million outflows. In terms of regions, the United States again dominated with $43 million. Brazil and Australia followed with inflows of $7.6 million and $2.9 million 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 with Dall.E, chart from Tradingview.com
