Ethereum Experiences Worst Outflows Performance Since 2022

Digital asset investment products saw their third consecutive week of withdrawals totaling $30 million, with Ethereum (ETH) continuing to experience outflows while there are signs of evolving investor sentiment towards Bitcoin (BTC).

Shifting Market Sentiment

According to the latest Digital Asset Fund Flows Weekly report by CoinShares, most providers reported minor inflows, although Grayscale recorded significant outflows amounting to $153 million. Trading volumes rose by 43% compared to the previous week, reaching $6.2 billion, yet remaining below the annual average of $14.2 billion as highlighted in the report.

During the past week, multi-asset and Bitcoin ETPs led the inflows with $18 million and $10 million respectively. Conversely, products designed to short Bitcoin saw outflows of $4.2 million, indicating a potential shift in market sentiment. Several altcoins attracted investor interest, with Solana (SOL) receiving $1.6 million, Litecoin (LTC) $1.4 million, and smaller inflows noted for Chainlink (LINK) and Ripple (XRP) at $0.6 million and $0.3 million respectively.

A Mixed Bag

Investment products tied to Ethereum witnessed the largest outflows since August 2022, totaling $61 million over the week, contributing to a two-week total of $119 million, positioning it as the worst-performing asset in terms of net flows for the entire year. Despite positive sentiment towards cryptocurrencies this year, blockchain equities faced significant outflows of $545 million, representing 19% of assets under management.

In geographical terms, the US led in inflows with $143 million, followed by Brazil with $7.6 million and Australia with $3 million in weekly inflows. Conversely, Germany, Hong Kong, Canada, and Switzerland saw outflows totaling $29 million, $23 million, $14 million, and $13 million respectively during the same period, with Sweden recording outflows of $4.3 million.