Bitrabo Editorial
Last week, cryptocurrency investment products tracking Ethereum and other digital assets experienced outflows for the third week in a row, although the amount was lower than before, with $30 million exiting digital investment products.
This recent outflow pattern differed from the norm, as Ethereum-based investment products saw significant movement with institutional investors withdrawing a substantial $60.7 million in just one week, marking the largest outflow of the year.
Outflows Lead by Ethereum
The latest report from CoinShares on Digital Asset Fund Flows indicates a shift in institutional investor sentiment towards Bitcoin, which turned notably bullish. While Bitcoin products saw inflows of $10 million last week, showcasing continued bullish confidence in Bitcoin despite recent price struggles, Ethereum products faced outflows of $61 million, the highest since August 2022. This has resulted in Ethereum being the worst-performing asset year-to-date in terms of net flows, with a total outflow of $25 million for the year so far.
Among other digital assets, only Ethereum experienced outflows, with multi-asset products leading in inflows at $17.9 million. While Bitcoin saw $10 million in inflows, other altcoins like Solana, Litecoin, XRP, and Chainlink also saw minor inflows. This suggests that institutional investors are still willing to invest in altcoins despite their recent price performance.
Reflecting this positive sentiment, short-bitcoin products had $4.2 million in outflows. Trading volumes increased by 43% week-on-week to $6.2 billion but remained below the yearly average of $14.2 billion.
While most providers experienced minor inflows, Grayscale offset these with $153 million in outflows. The US led in terms of region with $43 million in inflows, followed by Brazil and Australia. Conversely, Germany, Hong Kong, Canada, Switzerland, and Sweden experienced outflows.