Ethereum Investment Products Lost Another $50 Million
The Ethereum investment product market saw a record outflow of $50 million last week. This indicates an escalation of a bearish sentiment among the institutional investors.
According to the CoinShares’ “Digital Asset Fund Flows Weekly” report, there has been an outflow of funds from Ether products for three weeks in a row. In just a week from May 31 to June 6, $64.3 million left the sector.
According to the report, $313 million have been withdrawn from the institutional crypto products since mid-May.
Compared to Ether, the capital outflow from Bitcoin, on the contrary, slowed down to $1.3 million. Last week, the capital outflow from the first cryptocurrency totalled $89 million.
This trend has been seen in the cryptocurrency market for seven consecutive weeks. However, some funds have noted a little inflow of assets into their Bitcoin products, including Grayscale. This means that there is still no certainty among the investors about BTC.
CoinShares also noted that multi-assets continue to ignore the negative trend, posting weekly earnings.
The second and third largest crypto asset managers, CoinShares and 3iQ, had the highest overall asset outflows. Over the week, CoinShares lost $56.4 million in assets, and 3iQ lost $27.1 million. However, Grayscale has remained relatively stable with negligible weekly inflows of $1.3 million.
Ethereum’s investment products have outperformed Bitcoin in recent months. Even less than a month ago, while investing in Ether products, BTC products suffered losses. But the world’s institutional appetite for Ether seems to be waning.
According to a report from Glassnode, about a month ago, miners’ transaction fee revenue declined more than 85% from 15,000 ETH per day. The seven-day average is now 1,900 ETH.