The year did not begin on a sound footing for Ethereum investment products as it struggles to attract significant inflows from institutional investors. The outflows have been alarming, with a record $451 million moved out of the network.
Ethereum Grappling with Wider Market Slump
The second-largest cryptocurrency is among the top 10 tokens of badly hit digital assets. However, ETH has had a ray of sunshine as the market sentiment favors the largest altcoin. Over the past week, Ethereum investment products have experienced a resurgence in trading volumes as they recorded roughly $5 million in inflows.
As the bearish market trend rages, institutional investors are shifting their attention to short-term Bitcoin investment products. Interestingly, other multi-assets like Solana and Polkadot have experienced slight inflows over the past week.
Furthermore, the broader crypto-assets investment products recorded a total inflow of $64 million over the past week. However, most of these transactions are found in short-term Bitcoin investments.
For the second consecutive week, the largest altcoin saw another improvement in its investment product performance last week. Thus, this halts the 11-week outflow as Ethereum seeks to recover from the slump.
On the other hand, the fourth week of last month was the biggest setback that Bitcoin has ever experienced this year. The flagship digital currency saw its investment product outflows more than double their previous ones.
As a result, this greatly impacted the wider digital asset market as global trade volume dropped to its lowest. Bitcoin is still hovering below the $20,000 mark at the time of writing, signaling another distressing performance for the leading digital asset.
Crypto Asset Performance by Region
Crypto asset managers across Europe, except Sweden, witnessed significant inflows over the past week. Furthermore, North America and Australia also get a slice of the market takeaways as investment products recover.
The United States’ crypto asset managers shared the spoils with a record $46 million in inflows. Moreover, the improved figure also has some short-Bitcoin products involved.
Countries like Canada, Brazil, Germany, and Switzerland have a total of $20 million in inflows. The past week has been a general success for most crypto-assets amid the market bloodbath.
It is worth noting that the recent trend is an indication that investors have the long-term in mind as they dump funds into the market to buy them at a discount.
A rather interesting aspect regarding the recent inflows in the U.S. is that the accessibility of investment products triggers short-Bitcoin investment for the first time in America.
Analysts believe the U.S. situation is not due to the negative market sentiment that has been a regular feature of the digital asset space.
The crypto assets under management worldwide are close to $35.4 billion from the current flows worldwide. On the other hand, Bitcoin and Ethereum investment products are roughly $32 billion globally.
As the market bloodbath continues, most crypto-assets will struggle to break even. The crypto winter has been biting hard for some time.
Source: https://crypto.news/ethereum-investment-product-5m-weekly/