Ether investment products have seen a record amount of money being withdrawn since 2022. According to CoinShares’ weekly analysis, between June 24-29, investors pulled $61 million from Ether funds, marking the largest outflow since August 2022. This has led to total outflows of $119 million in the past two weeks, resulting in a negative total balance of $37 million for June. Year-to-date, Ether funds have experienced net withdrawals of $25 million, making them the worst-performing asset in terms of net flows.
The outflows have continued despite the approval of Ether exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in May. In fact, the cryptocurrency’s price fell by 8.7% in June. The SEC’s request for prospective issuers to resubmit their S-1 forms by July 8 has delayed the debut of eight approved Ethereum ETFs to mid-July or later. Despite this setback, Bitwise has predicted that Ethereum ETFs could attract $25 billion by the end of 2025. However, these positive forecasts have yet to materialize as Ether investment products struggle to retain investor interest.
CoinShares’ report also indicated that while Bitcoin ETF providers saw modest inflows, Ether experienced significant outflows. Grayscale’s Bitcoin fund, for instance, saw outflows of $153 million, but overall, Bitcoin ETFs managed a net inflow of $10 million. Multi-asset ETPs also led inflows with $18 million, suggesting a potential shift in investor sentiment.
The overall performance of digital asset investment products has seen a downturn due to Ether’s substantial outflows. In the past week, multi-asset and Bitcoin ETFs led inflows with $18 million and $10 million, respectively. Short-bitcoin products saw a rise in outflows totaling $4.2 million, indicating a possible shift in market sentiment. Trading volumes rose by 43% week-on-week to $6.2 billion as of June 29. However, this figure remains below the $14.2 billion weekly average for the year. Among altcoins, Solana funds saw inflows of $1.6 million, while Litecoin attracted $1.4 million during the same period.
Regionally, the United States reported $43 million in inflows, with Brazil and Australia also recording positive movements of $7.6 million and $3 million, respectively. In contrast, negative sentiment prevailed in Germany, Hong Kong, Canada, and Switzerland, with outflows of $29 million, $23 million, $14 million, and $13 million, respectively.
Despite positive sentiment for cryptocurrencies earlier this year, blockchain equities have suffered. This year, $545 million has been withdrawn, representing 19% of the market capitalization.