By
Temitope Olatunji
July 3rd, 2024
Over the last two weeks, the ETH product outflows have now crossed $119 million. This also makes Ethereum the worst-performing asset year-to-date in terms of net flows.
Popular digital assets management platform CoinShares published a report stating that the digital assets investment products witnessed the third consecutive week of outflows totaling $30 million. However, in contrast to the previous weeks, most crypto investment products saw mintor inflows which was offset by Grayscale seeing $153 million outflows. Interestingly, it turns out Ethereum products saw the highest outflows in nearly two years since August 2022, totaling $61 million. Over the last two weeks, the ETH product outflows have now crossed $119 million. This also makes Ethereum the worst-performing asset year-to-date in terms of net flows.
Many were actually predicting the approval of the spot Ethereum ETF this week by July 4. However, late Friday, June 28, the US Securities and Exchange Commission (SEC) returned the form S-1 to the issuers asking them to refile it on July 8. Thus, it would further delay the approval process either to mid-July or July end.
The delay leaves Ethereum holders in uncertainty. ETFstore President Nate Geraci previously mentioned that the latest round of S-1 revisions was relatively minor, suggesting that regulators might approve issuers for trading within the next 14-21 days. Although the exact timeline remains uncertain, the SEC has hinted at a potential launch this summer.
However, the recent funds flow report from CoinShares said that the spot Ethereum ETF turned out to be a ‘Sell the News’ event.
Trading Volumes See an Uptick but Remain Below the Yearly Average
Trading volumes rose by 43% week-on-week to $6.2 billion but remain well below the $14.2 billion weekly average for the year so far.
Region-wise, the US experienced inflows of $43 million, while Brazil and Australia witnessed inflows of $7.6 million and $3 million respectively. On the other hand, there was strong negative sentiment in Hong Kong, Germany, Canada, and Switzerland, with outflows to the tune of $10 million to $30 million.
Multi-asset and Bitcoin ETPs led the inflows with $18 million and $10 million, respectively. Short-Bitcoin also saw a rise in outflows totaling $4.2 million last week, suggesting a potential shift in sentiment. A range of altcoins, including Solana ($1.6 million) and Litecoin ($1.4 million), also experienced inflows.
Despite the positive sentiment for digital assets in 2024, blockchain equities have suffered outflows of over half a billion dollars, representing ~20% of the AUM.