Ethereum has faced its most significant outflows since August 2022, according to CoinShares, highlighting a challenging period for the cryptocurrency market. Digital asset investment products have recorded their third consecutive week of outflows, totalling $30 million. Despite this trend, there are signs of shifting investor sentiment towards Bitcoin.
Continued Ethereum Outflows
The latest Digital Asset Fund Flows Weekly report by CoinShares reveals that Ethereum investment products experienced outflows of $61 million last week, marking the worst performance since August 2022. This brings the two-week total outflows for Ethereum to $119 million, making it the poorest-performing asset year-to-date in terms of net flows.
Minor Inflows Counterbalanced by Grayscale Outflows
While several providers recorded minor inflows, these were overshadowed by significant outflows from Grayscale, which saw $153 million withdrawn. Despite a 43% week-on-week increase in trading volumes to $6.2 billion, the figure remains well below the yearly average of $14.2 billion, according to CoinShares.
Shifting Sentiment Towards Bitcoin and Other Altcoins
Interestingly, multi-asset and Bitcoin exchange-traded products (ETPs) led the inflows, attracting $18 million and $10 million respectively. Short-Bitcoin products experienced outflows of $4.2 million, suggesting a possible shift in market sentiment. Among altcoins, Solana saw inflows of $1.6 million, Litecoin $1.4 million, Chainlink $0.6 million, and XRP $0.3 million.
Global Trends in Digital Asset Investment
On a regional level, the United States dominated with $143 million in inflows, followed by Brazil with $7.6 million and Australia with $3 million. In contrast, Germany, Hong Kong, Canada, and Switzerland recorded significant outflows of $29 million, $23 million, $14 million, and $13 million respectively. Sweden also saw outflows amounting to $4.3 million.