The final week of June was a turbulent one for Ethereum exchange-traded products, as they experienced the highest outflow since August 2022. CoinShares’ weekly analysis revealed that investors withdrew $61 million from Ether (ETH) investment products between June 24-29. This brings the total outflows for the past two weeks to $119 million, with June’s total balance reaching $37 million in funds withdrawn. As a result, Ether funds have become the worst-performing asset year-to-date in terms of net flows, with $25 million withdrawn thus far.
Despite the approval of Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) in May, the cryptocurrency saw its price decline by over 8.7% in June. Analysts anticipate that the eight approved funds will debut in the coming weeks. However, the SEC has recently requested that prospective issuers resubmit their S-1 forms by July 8, causing the ETFs’ launch to be postponed until mid-July or later. Bitwise predicts that these funds will attract $25 billion by the end of 2025.
Ether’s outflows, amounting to $30 million, have negatively impacted the overall performance of digital asset investment products in the past week. However, unlike previous weeks, most Bitcoin ETF providers experienced modest inflows during this period, according to CoinShares. Grayscale’s Bitcoin (BTC) fund saw outflows of $153 million, offsetting an overall inflow of $10 million among other issuers.
“Multi-asset and Bitcoin ETPs led the inflows with US$18m and US$10m respectively. Short-bitcoin also saw a rise in outflows totaling US$4.2m last week, suggesting sentiment may be turning,” stated the report.
Trading volumes increased by 43% week-on-week to reach $6.2 billion as of June 29. However, this figure remains “well below” the weekly average of $14.2 billion for the year so far. Among altcoins, Solana (SOL) funds received inflows of $1.6 million, while Litecoin (LTC) attracted $1.4 million during the same period.
In 2022, a total of $545 million has been withdrawn from blockchain equities, representing 19% of the market capitalization.
Magazine: VanEck files for Solana ETF, Ether supply inflates, and more: Hodler’s Digest, June 23-29.