Ethereum Faces Fourth Week of Outflows Amid Positive Crypto Trends
Summary:
Despite the upward trend in other cryptocurrencies, Ethereum-based crypto investment products faced a fourth consecutive week of negative outflows. Ethereum saw $22.5 million worth of outflows, while Litecoin, Solana, and Filecoin recorded positive inflows. Meanwhile, Ether's price increased by 6.8%. However, investor's appetite for exchange-traded funds (ETFs) seems to be decreasing, as per CoinShares report.
Investment products related to Ethereum experienced a downturn for the fourth week in a row, despite a positive trend in other cryptocurrency-based products. Last week, Ethereum reported losses of $22.5 million, which contradicts the performance of other leading alternative cryptocurrencies, as reported by CoinShares on the 8th of April. The report further noted that, "Despite Ethereum’s downtrend, investment products in digital assets continue to gain traction, with a total inflow of $646 million last week. This year's inflow has reached a record high of $13.8 billion, significantly higher than last year's figure of $10.6 billion."
While Ethereum has seen losses for four consecutive weeks, other major altcoins have shown a trend for positive inflows. Litecoin recorded a weekly gain of $4.4 million, followed by Solana and Filecoin, which registered inflows of $4 million and $1.4 million respectively.
The price of Ether (ETH) saw a rise of 6.8% in the 24 hours leading up to UTC 11:45, trading at $3,625. Despite a 2.3% rise over the week, the world's second-largest cryptocurrency has seen a decline of 8.2% over the past month, according to data from CoinMarketCap.
Due to its scalability and capacity for high transaction volume, Solana is often mentioned as a potential rival to Ethereum. Over the past month, Solana's (SOL) token rose by 24%, as Ether dropped by more than 6.2%, according to data from TradingView.
Investor interest in exchange-traded funds (ETFs) appears to have waned, despite weekly inflows to digital asset products amounting to $646 million, CoinShares report suggests. When comparing current stats the company noted, "It seems ETF investors' appetite has dropped, with flow levels not matching those seen in early March and last week's volumes falling to $17.4 billion compared to the $43 billion witnessed in the first week of March."
Ever since the approval of spot Bitcoin ETFs in January, they have collectively acquired more than 834,000 Bitcoin equalling $60.4 billion in on-chain assets and currently account for 4.24% of all BTC in circulation, as per the data provided by Dune.
Bitcoin investment products experienced their third week of consecutive outflows, totalling $9.5 million, indicating, according to CoinShares, "a slight sentiment of surrender among pessimistic investors.
Published At
4/8/2024 4:23:53 PM
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