ETH Investment Products Seen Their Largest Outflows Since 2022

Ether Investment products encountered substantial outflows towards the end of June, marking their most significant withdrawals since August 2022. 

Source: cryptoslate.com

The weekly analysis reported a notable downturn, with investors pulling out $61 million from Ether investment products between June 24 to 29 alone. This contributed to a total outflow of $119 million over the past two weeks, significantly impacting the balance for June, which saw a reduction of $37 million due to funds being withdrawn.

This recent trend has positioned Ether funds as the worst-performing asset in terms of net flows year to date, with a total of $25 million withdrawn thus far in 2024. Despite the optimistic approval of Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) back in May, Ether's price experienced a decline of over 8.7% throughout June. This decline occurred even as market participants anticipated positive market sentiments post-approval. 

Analysts are eyeing the debut of these approved ETFs, which are expected to launch in mid-July or later. This timeline follows the SEC's recent request for issuers to resubmit their S1 forms by July 8, delaying the anticipated rollout. Among these analysts, it has been projected that these ETFs could collectively attract up to $25 billion in assets by the end of 2025, underscoring the ongoing interest and potential growth opportunities in the cryptocurrency market.

Shift Sentiment Surrounding Ether Investment Products

Ether's outflows contributed to a decline in the overall performance of digital asset investment products over the past week, totaling $30 million. However, Bitcoin ETF providers experienced modest inflows, in contrast to previous weeks. Grayscale's Bitcoin fund saw outflows of $153 million, offsetting the $10 million inflow among other issuers. Multi-asset and Bitcoin ETPs led the inflows with $18 million and $10 million respectively. Short bitcoin also saw increased outflows totaling $4.2 million last week, indicating a potential shift in sentiment, the report stated.

Trading volumes increased by 43% week on week to $6.2 billion as of June 29 but remained significantly below the year-to-date weekly average of $14.2 billion. Among altcoins, Solana funds attracted $1.6 million in inflows, while Litecoin saw $1.4 million over the same period. This year, a total of $545 million has been withdrawn from blockchain equities, which represents 19% of the market capitalization.

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