Ahead of two upcoming deadlines for spot ETF applications, institutional investors are draining Ethereum products from the market.Recent coin share Data showed that capital outflows from Ethereum institutional products continued last week as expectations for spot Ethereum ETFs in the U.S. grew.
Ethereum has seen $23 million in outflows in the past seven days, on top of the $14 million in outflows recorded the previous week. These red numbers amid inflows into Bitcoin products raise concerns about asset positions as market volatility continues.
Analysts point to decline in ETF sentiment
The Securities and Exchange Commission remains skeptical of cryptoassets, citing regulatory concerns. As a result, regulatory authorities are constantly pushing back approval dates and subjecting spot ETF applications to increased scrutiny. ArkInvest and 21Shares removed staking this month as companies seek to meet the commission's requirements.
The financial regulator also said that Galaxy, Invesco, black rock Each. The status quo remains the same, but a big day for the SEC is approaching. The market awaits SEC decisions on VanEck and 21Shares' filings, scheduled for May 23 and May 24, respectively.
Last week saw outflows due to weaker sentiment and less change in the number of approvals expected by market analysts. Bloomberg analyst Eric Balciunas made a similar prediction, pegging the chance of approval at 25%. This led to a sharp decline in sentiment, with Ethereum prices flattening amid a surge in other crypto assets.
Reversal of sentiment towards Ethereum products today
Last week’s outflows from Ethereum institutional products may not be seen this week as positive sentiment clouds the market.With Balchunas James Seifert Chance of approval increased to 75%.
“Update: @JSeyff and I are increasing the probability of Spot Ether ETF approval from 25% to 75%. We heard rumors this afternoon that the SEC could do a 180-degree turn on this (an increasingly political issue), so now everyone's panicking (like the rest of us). , I thought everyone else would be rejected too). See Nate's tweet below for the likely order of events. ”
Similarly, as sentiment increased, the likelihood of approval at Polymaket also increased by 50%. At the time of writing, ETH is trading at $3,672, up 18% in the past 24 hours.
Also read: 3 crypto assets to sell today before it turns bearish
