Largest Ether Outflows Since 2022

Large outflows from Ether funds are in stark contrast to the movements observed in Bitcoin and other cryptocurrencies.

The final week of June was characterized by a turbulent market for Ethereum exchange-traded products, which experienced the largest outflow since August 2022.

According to CoinShares’ weekly analysis, investors withdrew $61 million from Ether investment products between June 24-29, resulting in a total discharge of $119 million over the past two weeks and a total balance of $37 million in funds withdrawn for June.

Ether funds have been the asset that has underperformed year-to-date in terms of net flows due to the decline, with a total withdrawal of $25 million.

Despite the United States Securities and Exchange Commission (SEC)’s approval of Ether exchange-traded funds (ETFs) in May, the cryptocurrency experienced a price decline of over 8.7% in June.

According to analysts, the eight funds that have been approved are anticipated to make their debut in the upcoming weeks.

The SEC has recently requested that prospective issuers resubmit their S-1 forms by July 8, which will delay the launch of the ETFs until mid-July or later, according to Bloomberg ETF analysts Eric Balchunas and James Seyffart. By 2025, Bitwise anticipated that the funds would garner $25 billion.

Change in Sentiment

Over the past week, the performance of digital asset investment products was negatively impacted by the outflows of ether, which amounted to $30 million. Nevertheless, CoinShares reported that most Bitcoin ETF providers experienced modest inflows, starkly contrasting with the previous weeks.

Grayscale’s Bitcoin fund experienced outflows of $153 million during the week, which counterbalanced an aggregate inflow of $10 million from other issuers.

“The inflows were primarily driven by Bitcoin ETPs and multi-asset ETPs, with US$18m and US$10m, respectively.” Last week, there was also a rise in outflows totaling US$4.2m in short-bitcoin, which indicates that sentiment may be shifting, according to the report.

According to CoinShares, trading volumes increased by 43% week-on-week to $6.2 billion as of June 29, but they remained “significantly lower” than the $14.2 billion weekly average for the year thus far. Litecoin attracted $1.4 million, while Solana funds saw inflows of $1.6 million during the period.

This year, blockchain equities have been withdrawn for $545 million, which accounts for 19% of the market capitalization.