Ether Investment Products See Record Outflows Since 2022

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.

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.

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.

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.