In the past week, $36 million came out of Ethereum (ETH) exchange-traded products (ETPs), According for CoinShares data. This outflow of funds from the Ethereum ETP was the largest seen in a week since the merger in September 2022.
This outflow of funds from the Ethereum ETP was the largest in a week since the merge in September 2022, a significant event in Ethereum’s history that included the transition from Proof-of-Work to Proof-of-Stake consensus mechanism.
ETPs are investment products that provide exposure to the price movements of Ethereum or other digital assets.
Despite the outflows, Ethereum ETPs outperformed bitcoin (BTC) investment products. Outflows from Ethereum ETPs represented only 0.6% of assets under management (AUM).
The Bitcoin ETP continued to lose money for the eighth week in a row. Bitcoin ETP outflows reached $52 million, bringing total outflows in 8 weeks to $254 million, representing 1.2% of AUM. The data shows that the short-Bitcoin ETP lost $1.1 million, while its 7-week outflows were equivalent to 44% of assets under management.
Data indicates that Litecoin (LTC), XRP (XRP), and Solana (SOL) ETPs saw modest inflows last week. Polygon (MATIC), however, saw outflows during this period. Overall, most major altcoins (except Tron) have seen year-on-year inflows, while Bitcoin and Ethereum have seen outflows.
Overall, digital asset investment products saw outflows of $88 million last week. According to the data, the total withdrawals have reached $417 million in the last 8 weeks. Between April and June of 2022, digital asset investment products saw outflows for 12 consecutive weeks.
Explaining the reason behind the consecutive weeks of outflows from digital asset investment products, CoinShares noted:
“We believe, as last year, that as it relates to monetary policy, there is currently no clear end in sight to interest rate hikes, which is making investors cautious.”