US Securities and Exchange Commission (SEC) continued to delay the approval of spot Ethereum Exchange-Traded Funds (ETFs). This resulted into a significant increase in trading fees. Ethereum ETFs record their largest outflows for two years.
The following is a list of CoinShares‘ latest digital asset fund reportThese outflows led to a negative flow of $30 million in global investment products related to cryptography for the third week running.
James Butterfill is the head of Coinshares research and he noted that the last week’s modest amount suggested “a significant stemming of the outflows.”
The trading volume for these products increased by 43% from week to week, reaching $6.2 billion. The weekly average is $14.2 billion.
Ethereum has seen the highest withdrawals in two years
Ethereum outflows topped $61 million in the last week. This is the highest amount since August 20, 2022. ETH has seen outflows of $119 million over the last two weeks. This makes it the most underperforming asset in terms of year-to date metrics, with a net negative flow amounting to $25 million.
Butterfill said that investors were hesitant to invest due to the uncertainty surrounding when Ethereum ETFs would begin trading. Bloomberg ETF Analyst Eric Balchunas reported on June 28, noted It is important to note that approval by the financial The SEC is still cleaning documents and some applicants have not finished.
Bitcoin was a beneficiary of this change in sentiment with $10 million in inflows last week. The CoinShares report noted that most Bitcoin ETF providers such as BlackRock, IBIT, and Fidelity’s FBTCInflows were modest, partly offsetting outflows of $153 million from Grayscale’s GBTC fund.
Positive sentiments also resulted in $4.2 Million of outflows for Short-Bitcoin Positions. Market observers also noted that BTC’s price struggles These bearish traders may have paid considerable attention to the situation.
Solana, a large-cap digital asset like Litecoin and Solana also experienced minor inflows. These were $1.6 and $1.4 millions respectively. Butterfill said:
“Blockchain equities, despite the positive sentiment for crypto this year, have suffered outflows of $545 million this year, representing 19% of AuM.”
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Source: cryptoslate.com