Cointelegraph Team
Cointelegraph
Ethereum investment products have experienced a record outflow of $50 million this past week, signaling bearish sentiment among institutional investors.
According to the CoinShares' “Digital Asset Fund Flows Weekly” report, Ether products have now experienced outflows for three consecutive weeks, with $64.3 million leaving the sector since the week ending June 6.
Despite the drawdowns, $943 million has flowed into Ether investment products since the start of 2021.
The crypto investment product sector saw outflows overall for the fourth consecutive week, with $44 million exiting the sector over the past seven days. The report estimates that $313 million has been withdrawn from institutional crypto products since mid-May.
While crypto products saw outflows broadly this past week, Ether experienced the largest exodus of capital, with Bitcoin outflows slowing to $1.3 million – down from $89 million for the previous week. There have now been seven consecutive weeks of BTC outflows since early May.
Some funds saw minor inflows to their Bitcoin products, including Grayscale, suggesting mixed sentiment amongst investors regarding BTC.
CoinShares also noted that multi-assets have continued to defy the trend by again posting weekly inflows, stating:
“Multi-digital asset investment products continued to buck the negative trend with inflows of US$6m last week, suggesting that investors continue to favour digital assets but are keen to diversify.”
Exposure to institutional crypto investment products reached record levels during the height of the bull market earlier this year, however, investors have been taking profits during the downturn.
The second and third largest crypto asset managers, CoinShares and 3iQ, had the highest total outflows of assets with $56.4 million and $27.1 million for the week respectively. Industry leader, Grayscale, remained relatively stable with a minor inflow of $1.3 million for the week.
Ethereum investment products had been outperforming Bitcoin in recent months – with Ether products experiencing inflows while BTC products suffered drawdowns less than one month ago – but the institutional appetite for the world’s second-largest crypto asset appears to be waning.
At the time of writing, ETH prices were trading up 8.5% on the day at $2,135, while BTC was changing hands for $34,900 after gaining 1.8% over the past 24 hours, according to CoinGecko.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.