Ethereum-Based Investment Products Experience Outflows for Fourth Straight Week

As of April 8, 2024, Ethereum-based investment products have recorded outflows for the fourth straight week, a trend that stands in stark contrast to the buoyant sentiment elsewhere in the digital asset sector, such as the Solana ecosystem. This occurs even as Ethereum’s price rebounds to $3,629.07, demonstrating the complex dynamics at play within the cryptocurrency markets.

Data released by CoinShares reveals that year-to-date inflows into digital asset investment products stand at an all-time high of $13.8 billion. This far exceeds the $10.6 billion figure seen over the entirety of 2021.

Ethereum-Based Investment Products Struggle

While the broader digital asset investment landscape has seen continued positive sentiment, with inflows totaling $646 million last week, the Ethereum-based investment products have been facing a different trend.

The CoinShares report reveals that Ethereum-based investment products saw outflows of $22.5 million during the past week, marking the fourth consecutive week of negative flows. This stands in contrast to the performance of other altcoins, which have continued to attract investor interest.

Notably, assets such as Litecoin, Solana, and Filecoin saw inflows of $4.4 million, $4 million, and $1.4 million, respectively, during the same period. This disparity inflow suggests that investors may be shifting their focus away from Ethereum-based products and towards alternative blockchain projects.

Ethereum Whales and Market Movements

Despite Ethereum’s market capitalization reaching $435.74 billion and an impressive 24-hour trading volume of $17.12 billion, Ethereum-based investment products are experiencing a persistent withdrawal of funds. Concurrently, Ethereum’s price experienced a sharp 7% rebound, surpassing the $3,600 mark, signaling robust market activity. This period also witnessed significant movements by Ethereum whales, with two prominent whales withdrawing 11,657 ETH (valued at around $40.28 million) from Binance, indicating their substantial impact on market liquidity and investor sentiment.

This surge coincided with the detection of significant movements by Ethereum whales. Notably, two whales, identified as 0x666 and 0x435, withdrew a total of 11,657 ETH, valued at approximately $40.28 million, from Binance when the price hovered around $3,455. Such activities underscore the influence of major investors on Ethereum’s liquidity and market sentiment.

Additionally, Swyftx data reveals that high-value transactions and exchange activities have characterized Ethereum’s market. Over the past week, transactions exceeding $100K amounted to $52.14 billion, underscoring the large-scale movements within the Ethereum ecosystem, as per analytics platform Swyftx.