CoinShares’ latest report has revealed a troubling trend for Ethereum and the broader digital asset market with outflows hitting $30 million last week. This marks the third consecutive week of outflows signaling investor caution and market volatility. Ethereum with its highest outflow amounting to $61 million since August 2022, has become the worst-performing digital asset investment product so far this year.
This was in contrast to prior weeks, when most providers recorded minor inflows, except Grayscale which saw $153 million outflows offsetting the inflows. Additionally, trading volumes surged by 43% week-on-week to $6.2 billion but remain well below the $14.2 billion weekly average for the year so far.
Nationwide, the US saw the largest inflows with $43 million whereas Brazil and Australia recorded inflows of $7.6 million and $3 million respectively. In contrast, Germany, Hong Kong, Canada, and Switzerland posted outflows of $29 million, $23 million, $14 million, and $13 million respectively.
Ethereum, the second largest crypto registered the largest outflows since August 2022, totaling $61 million, bringing the last two weeks of outflows to $119 million, making it the worst-performing asset year-to-date in terms of net flows.
Solana and Litecoin Gain Inflows as Ethereum Stumbles
On the other hand, multi-asset and Bitcoin ETPs led the inflows with $18 million and $10 million respectively. Short-bitcoin also saw a rise in outflows totaling $4.2 million last week, suggesting a shifting sentiment. A range of altcoins saw inflows, most notable were Solana [$1.6 million] and Litecoin [$1.4 million].
Blockchain equities, despite the positive sentiment for digital assets this year, have suffered outflows of $545 million this year, representing 19% of AuM.
Ethereum’s latest outflow coincides with the pending approval of an ETF on July 4th. This development is being closely watched, as it is the culmination of almost three years of planning. The ETF flow has also negated the previous forecast of potential mass outflows from Bitcoin ETFs where investors rush to pour their money into the new ETH ETF.
