Ethereum Investment Products See Large Weekly Outflows

by Bilal Jafar
  • So far in 2022, ETH-related products saw institutional outflows worth $169 million.
  • Bitcoin investment products witnessed minor weekly inflows of $2.6 million.
Ethereum
AFP

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 has 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 has 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.

About the Author: Bilal Jafar
Bilal Jafar
  • 2441 Articles
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About the Author: Bilal Jafar
Bilal Jafar holds an MBA in Finance. In a professional career of more than 8 years, Jafar covered the evolution of FX, Cryptocurrencies, and Fintech. He started his career as a financial markets analyst and worked in different positions in the global media sector. Jafar writes about diverse topics within FX, Crypto, and the financial technology market.
  • 2441 Articles
  • 71 Followers

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