The
US
Securities
and
Exchange
Commission’s
continued
delay
in
approving
spot
Ethereum
exchange-traded
funds
(ETFs)
for
trading
resulted
in
Ethereum
ETFs
recording
their
most
significant
outflows
in
two
years.
According
to
CoinShares‘
latest
digital
asset
fund
report,
these
outflows
resulted
in
a
third
consecutive
week
of
negative
flows
of
$30
million
for
global
crypto-related
investment
products.
However,
James
Butterfill,
Coinshares
head
of
research,
noted
that
last
week’s
modest
flow
suggested
“a
significant
stemming
of
the
outflows.”
Meanwhile,
the
negative
sentiment
had
little
impact
on
the
trading
volume
of
these
products,
which
rose
by
43%
week-on-week
to
$6.2
billion.
However,
this
is
still
significantly
lower
than
the
weekly
average
of
$14.2
billion.
Ethereum
sees
highest
outflows
in
2
years
Ethereum
outflows
reached
$61
million
last
week,
the
highest
since
August
2022.
Over
the
past
two
weeks,
ETH
outflows
have
totaled
$119
million,
making
it
the
worst-performing
asset
on
the
year-to-date
metric,
with
a
negative
net
flow
of
$25
million.
Butterfill
attributed
the
outflows
to
investors’
negative
sentiment
surrounding
the
current
uncertainty
about
when
Ethereum
ETF
products
would
start
trading.
On
June
28,
Bloomberg
ETF
analyst
Eric
Balchunas
noted
that
the
approval
of
the
financial
instruments
could
be
further
delayed
until
the
week
of
July
8
because
the
SEC
and
some
applicants
were
still
tidying
documents.
Bitcoin
benefited
from
this
shift
in
sentiment,
with
inflows
totaling
$10
million
last
week.
The
CoinShares
report
noted
that most
Bitcoin
ETF
providers,
including
BlackRock’s
IBIT
and
Fidelity’s
FBTC,
recorded
modest
inflows,
partially
offsetting
the
$153
million
outflow
from
Grayscale’s
GBTC
fund.
The
positive
sentiment
also
led
to
$4.2
million
in
outflows
from
Short-Bitcoin
positions.
Moreover,
market
observers
noted
that
BTC’s
price
struggles
might
have
attracted
significant
attention
from
these
bearish
traders.
Large-cap
alternative
digital
assets
like
Solana
and
Litecoin
also
saw
minor
inflows
of
$1.6
million
and
$1.4
million,
respectively.
Meanwhile,
Butterfill
added:
“Blockchain
equities,
despite
the
positive
sentiment
for
crypto
this
year,
have
suffered
outflows
of
$545
million
this
year,
representing
19%
of
AuM.”
Mentioned
in
this
article
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Author: Oluwapelumi Adejumo
