ETP Ethereum Sees Largest Outflow Since 2022
Investors have withdrawn $61 million from Ethereum Exchange Traded Products (ETPs) in the final week of June 2024, bringing the total outflow over the past two weeks to $119 million.
Ethereum with coins faded backgroundETP Ethereum Sees Largest Outflow Since 2022
According to CoinShares' weekly analysis, investors pulled $61 million from Ethereum Exchange Traded Products (ETPs) between June 24th and June 29th, marking a significant increase in outflows over the past two weeks to $119 million.
ETP cryptocurrency fund flows. Source: CoinShares
Exchange Traded Products (ETPs) are structured similar to ETFs but offer a broader range of options such as commodities, currencies, bonds, and interest rates. The world's first Exchange Traded Product was Bitcoin, introduced by Wisdom Investment Tree.
This decline has positioned Ethereum Exchange Traded Products as the worst-performing investment vehicle with $25 million in outflows in the first half of this year. Meanwhile, Multi-asset ETPs and BTC ETPs recorded inflows of $18 million and $10 million respectively. CoinShares noted:
"The inflows into Multi-asset ETPs and BTC amount to $18 million and $10 million respectively, indicating a potential shift in market sentiment."
Additionally, CoinShares commented on positive signs in the market as total trading volume increased by 43% to $6.2 billion as of June 29th, although still significantly below the average of $14.2 billion.
The price of Ethereum also decreased by over 8.7% in June 2024 and is currently trading around $3,440. Despite positive developments such as the SEC beginning to approve Ethereum spot ETFs in May 2024, followed by issuers filing S-1 forms with the SEC on June 22nd. Bloomberg analyst Eric Balchunas suggested that the SEC could soon approve these S-1 filings, paving the way for Ethereum ETFs to be listed and traded ahead of the U.S. Independence Day holiday in early July.
