Ethereum Records Largest Weekly Outflow Since August 2022

Crypto investment products record another streak of outflow for the third consecutive week, totaling $30 million, with Ethereum losing $61 million. 

Leading digital asset company CoinShares revealed this in a recent report, emphasizing that while Bitcoin (BTC) saw inflows, Ethereum, the second-biggest cryptocurrency, witnessed outflows in the past week. 

Bitcoin Inflow Hits $10M 

According to CoinShares data, Bitcoin-related exchange-traded products (ETPs) saw an inflow of $10 million in the past week. 

While the figure may not be impressive, it is a significant boost compared to the previous report, where the products saw an outflow of $630 million. Following the latest performance, the total assets held across all Bitcoin ETPs have soared to an astounding $67.57 billion. 

In addition to Bitcoin, other digital assets witnessed inflows last week, with multi-asset ETP attracting $18 million. Furthermore, other altcoin-related ETPs also recorded positive netflows, including Solana ($1.6 million), Litecoin ($1.4 million), Chainlink ($600,000), and XRP ($300,000). 

Ethereum Witnesses Largest Outflow Since August 2022 

Conversely, ETPs related to Ethereum (ETH), the second-biggest cryptocurrency by market cap, ended the past week with outflows. According to the data, Ethereum registered its largest outflow for the first time since August 2022, totaling $61 million. 

Following the decline, Ethereum’s outflow soared to $119 million in two weeks, making ETH the worst-performing asset year-to-date (YTD) in terms of net flows. Per the report, the AUM (assets under management) across Ethereum’s ETP stood at $14.35 billion.  

This development comes as market watchers anticipate the SEC’s approval of S-1 documents relating to multiple spot Ethereum exchange-traded funds (ETFs). 

As reported earlier, Bloomberg’s ETF analyst Eric Balchunas projected that the SEC could approve these funds by July 2, 2024. Similarly, on June 19, Consensys’ product manager Jimmy Ragosa forecasted that the funds may be approved in days. It remains to be seen whether these predictions will come true. 

Regional Flows 

Meanwhile, the report also sheds light on net flows by region. Interestingly, the United States, Brazil, and Australia witnessed inflows to the tune of $43 million, $7.6 million, and $2.9 million, respectively. 

However, Coinshares pointed out that negative sentiments impacted crypto investment products in Germany, Hong Kong, Canada, and Switzerland, leading to outflows worth $29 million, $23 million, $14 million, and $13 million, respectively. 

Flows By Providers 

With respect to flows by providers, Grayscale’s converted Bitcoin Trust ETF led the charge in terms of outflow, totaling $153 million. 21Shares AG and CoinShares’ XBT also saw outflows of $29 million and $6 million, respectively. 

In contrast, BlackRock’s Bitcoin ETF attracted $84 million in inflows, followed by the ARK21Shares ETF, which saw $27 million worth of investments over the past week. Bitwise and Fidelity ETFs also saw inflows of $15 million and $13 million, respectively.