Crypto investment products that track Ethereum and other cryptocurrencies saw another small outflow last week, marking the third consecutive week of outflows. Digital investment products saw $30 million worth of outflows last week.
But this outflow bucked the trend. We usually observeBitcoin has retreated, with most of the movement coming from Ethereum-based investment products. Specifically, according to the latest CoinShares report, institutional investors have withdrawn $60.7 million from Ethereum-based investment products in just one week, the most so far this year.
Ethereum leads the exodus
CoinShares Latest Digital Asset Fund Flow Weekly Report Institutional sentiment towards Bitcoin turn bullish 1. It is worth noting that Bitcoin-based products saw $10 million worth of inflows last week. While this is small compared to the levels of inflows typically seen in crypto assets, the fact that it occurred suggests continued bullish sentiment for Bitcoin despite last week's lackluster price performance.
On the other hand, the same cannot be said. EthereumAs the spot Ethereum ETF launch drags on, institutional sentiment towards the king of altcoins appears to be waning, with the Ethereum-based ETF recording $61 million in outflows last week, the largest since August 2022.
As a result, the asset has lost $119 million worth of institutional investment over the past two weeks, making it the worst performing asset so far this year in terms of net outflows. This is supported by data from CoinShares, which shows that Ethereum's outflows so far this year are now at $25 million. Furthermore, according to the data, Ethereum is the only digital asset that has seen net outflows since the beginning of the year.
All other digital asset products recorded inflows last week. Multi-asset products led the way with $17.9 million in inflows. Bitcoin came in second with $10 million in inflows. Solana, Litecoin, XRP, and Chainlink also recorded smaller outflows with inflows of $1.6 million, $1.4 million, $300,000, and $600,000 respectively. The inflows suggest that institutional investors are still willing to put money into altcoins despite the lackluster price performance of most altcoins last week.
Reflecting bullish sentiment, short Bitcoin contracts saw outflows worth $4.2 million, while trading volume also grew 43% week-over-week to $6.2 billion, but still well below the annual weekly average of $14.2 billion.
According to CoinShares, most providers saw smaller inflows, most of which were offset by a $153 million outflow from Grayscale. By region, the United States again led the way with $43 million. Brazil and Australia followed with $7.6 million and $2.9 million in inflows, respectively. Meanwhile, Germany, Hong Kong, Canada, Switzerland and Sweden saw outflows of $28.5 million, $23.2 million, $14.4 million, $13.3 million and $4.3 million, respectively.
Featured image created by Dall.E, chart taken from Tradingview.com
