Ethereum Products Experience Largest Outflow Since August 2022 Despite ETF Approval
Summary:
The last week of June saw Ethereum exchange-traded products experiencing their largest outflow since August 2022, with $61 million withdrawn. This downturn led Ether to be the worst-performing asset in net flow for the year, with a total of $25 million withdrawn. Despite the recent approval of Ether exchange-traded funds by the United States Securities and Exchange Commission, the cryptocurrency's value dropped over 8.7% in June. Investors anticipate these funds will launch within weeks. Overall, digital investment products also saw a decline, with a $30 million outflow over the past week.
The last week of June proved to be a rocky period for Ethereum exchange-traded products, suffering the greatest outflows since August 2022. CoinShares' weekly report reveals that between June 24-29, $61 million was pulled out from Ether (ETH) investment products. This contributes to the fortnightly total of $119 million liquidated, with June seeing $37 million in total outflows. Consequently, Ether funds have become the poorest performers of the year-to-date in net flows, with a year-wide total of $25 million effectively extracted. The price of the popular cryptocurrency dropped by over 8.7% in June, in spite of the Ether exchange-traded funds (ETFs) receiving the green light from the United States Securities and Exchange Commission (SEC) back in May. Market experts predict that the eight sanctioned funds will officially launch in the upcoming weeks. Bloomberg ETF analysts, Eric Balchunas and James Seyffart, stated that the SEC has recently called for potential issuers to re-submit their S-1 forms by July 8, which delays the ETF debut to mid-July or beyond. Bitwise expects these funds to draw in $25 billion by the close of 2025. Source: CoinShares
The negative Ether outflows dipped the all-round performance of digital asset investment products for the past week, witnessing $30 million in departures. On the flip side, unlike the trend of previous weeks, most Bitcoin ETF providers experienced slight inflows, as per the CoinShares data. Grayscale's Bitcoin fund saw a net outflow of $153 million over the week, counterbalanced by a total intake of $10 million from other issuers.
"Multi-asset and Bitcoin ETPs primarily drove the inflows, raking in $18 million and $10 million respectively. Increase in outflows was also noted in short-Bitcoin, tallying up to $4.2 million last week, an indication of a possible shift in sentiment," the report highlighted. As of June 29, weekly trading volumes escalated by 43% to $6.2 billion, but still considerable less than the $14.2 billion weekly average for the year to date, explains CoinShares. Meanwhile, Solana (SOL) funds and Litecoin (LTC) saw a surge in inflows amassing $1.6 million and $1.4 million respectively. So far this year, blockchain equities experienced $545 million in total pullouts, making up 19% of the market capitalization. Magazine: VanEck lodges for Solana ETF, Ether supply expands, and various updates: Hodler’s Digest, June 23-29.
Published At
7/1/2024 11:47:24 PM
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