Ethereum Investment Products See Large Weekly Outflows

Last week, outflows from crypto investment products slowed down a little bit amid a marginal recovery in sentiment among institutional crypto investors. However, Ethereum, the world’s second-most dominant digital asset, witnessed significant outflows worth $16.9 million.

In 2022, Ethereum investment products remained the worst-performing products for institutional investors. So far this year, nearly $169 million worth of institutional investment left ETH products, compared to inflows of $252 million in Bitcoin products.

“Ethereum continues to suffer with a 3rd week of outflows totaling US$16.9m, bringing outflows year-to-date to US$169m. Digital asset investment products saw outflows cool last week, totaling US$7.2m, bringing total outflows in this 3-week run to US$219m. Despite recent weaker sentiment, flows year-to-date remain positive at US$389m although there are some divergences in assets emerging. Bitcoin saw minor inflows totaling US$2.6m last week although month-to-date outflows remain at US$178m,” CoinShares highlighted in its report.

Apart from large outflows from Ethereum products, altcoins saw a major jump in interest from institutional investors last week. Investors poured sizeable money into digital assets like Avalanche, Solana, Terra, and Algorand. Year-to-date inflows related to multi-asset products currently stand at around $146 million.

Investment Products

Amid market correction, the total number of crypto investment products launched in the first quarter of 2022 decreased sharply compared to the same period last year.

“The overall number of investment product launches has cooled, with only 11 in Q1 2022 versus 24 in Q4 2021. Of the 23 different investment products by asset type, 10 were launched this year. There has been a focus on altcoins, most notable of which were Avalanche, Tezos and Terra with US$49m, US$30m and US$16m of assets under management respectively. Despite the threat of global rising interest rates and its broad negative price impact on technology companies last week, blockchain equities saw minor inflows last week totaling US$3m,” the report added.

Last week, outflows from crypto investment products slowed down a little bit amid a marginal recovery in sentiment among institutional crypto investors. However, Ethereum, the world’s second-most dominant digital asset, witnessed significant outflows worth $16.9 million.

In 2022, Ethereum investment products remained the worst-performing products for institutional investors. So far this year, nearly $169 million worth of institutional investment left ETH products, compared to inflows of $252 million in Bitcoin products.

“Ethereum continues to suffer with a 3rd week of outflows totaling US$16.9m, bringing outflows year-to-date to US$169m. Digital asset investment products saw outflows cool last week, totaling US$7.2m, bringing total outflows in this 3-week run to US$219m. Despite recent weaker sentiment, flows year-to-date remain positive at US$389m although there are some divergences in assets emerging. Bitcoin saw minor inflows totaling US$2.6m last week although month-to-date outflows remain at US$178m,” CoinShares highlighted in its report.

Apart from large outflows from Ethereum products, altcoins saw a major jump in interest from institutional investors last week. Investors poured sizeable money into digital assets like Avalanche, Solana, Terra, and Algorand. Year-to-date inflows related to multi-asset products currently stand at around $146 million.

Investment Products

Amid market correction, the total number of crypto investment products launched in the first quarter of 2022 decreased sharply compared to the same period last year.

“The overall number of investment product launches has cooled, with only 11 in Q1 2022 versus 24 in Q4 2021. Of the 23 different investment products by asset type, 10 were launched this year. There has been a focus on altcoins, most notable of which were Avalanche, Tezos and Terra with US$49m, US$30m and US$16m of assets under management respectively. Despite the threat of global rising interest rates and its broad negative price impact on technology companies last week, blockchain equities saw minor inflows last week totaling US$3m,” the report added.

Source: https://www.financemagnates.com/cryptocurrency/news/ethereum-investment-products-see-large-weekly-outflows/