Ethereum sees largest outflows since August 2022, worst performing asset in 2024

Cryptocurrency investment products saw a third consecutive week of outflows totaling $30 million, with last week indicating a significant reduction in outflows. Ethereum, in particular, saw its largest outflows since August 2022, totaling $61 million.

These latest outflows from Ethereum bring the last two weeks of outflows to $119 million. As such, ETH is the worst-performing crypto asset year-to-date in terms of net inflows. The data comes from CoinShares and was released in its weekly report published this Monday (1st).

According to data from CoinGecko, the price of Ethereum has risen by 4.6% over the past week. At the time of writing, the altcoin is trading at $3,469.

Ethereum performs poorly

Despite this price appreciation and expectations of final approval of Ethereum ETFs in the United States, the second largest cryptocurrency on the market saw outflows in investment products such as ETPs as well as digital assets in general.

As CoinShares highlighted, in contrast to previous weeks, most cryptocurrency investment product providers saw smaller inflows. However, this was offset by Grayscale’s $153 million outflow.

Trading volumes increased 43% week-on-week to $6.2 billion. However, volumes remain well below the weekly average of $14.2 billion for the year to date.

Regionally, the United States recorded inflows of US$43 million, as did Brazil and Australia, with inflows of US$7.6 million and US$3 million, respectively.

On the other hand, negative sentiment permeated Germany, Hong Kong, Canada and Switzerland with outflows of US$29 million, US$23 million, US$14 million and US$13 million, respectively.

On the other hand, multi-asset and Bitcoin ETPs led inflows with $18 million and $10 million, respectively.

Short-Bitcoin products also saw a surge in outflows totaling $4.2 million last week. According to the report, these outflows in products that “bet” on BTC falling suggest that sentiment may be shifting toward the largest cryptocurrency on the market.

Finally, the report noted that a number of altcoins saw inflows, the most notable being Solana ($1.6 million) and Litecoin ($1.4 million). Blockchain stocks, despite the positive sentiment towards cryptocurrencies this year, have seen outflows of $545 million this year, representing 19% of AuM (Assets Under Management).