Ethereum is the worst performing crypto in net flows this year

Key Takeaways

• Ethereum recorded its largest outflows since August 2022, totaling $61 million.
• Positive shifts in Bitcoin and multi-asset ETPs suggest changing investor sentiment.

Crypto exchange-traded products (ETF) experienced their third consecutive week of net outflows, totaling $30 million. Notably, Ethereum-indexed ETPs saw over $60 million in outflows last week, their largest outflows since August 2022, according to asset management firm CoinShares. This makes Ethereum (ETH) the year’s worst-performing asset in terms of net flows.

Additionally, ETH’s total outflows to $119 million over the past two weeks. In contrast, multi-asset and Bitcoin ETPs saw inflows of $18 million and $10 million, respectively. The outflows from short Bitcoin positions totaled $4.2 million, indicating a potential shift in market sentiment.

Despite the grim weekly performance for Ethereum ETPs, the rate of outflows has slowed compared to previous weeks.

Image: CoinShares

Regionally, the US, Brazil, and Australia recorded inflows of $43 million, $7.6 million, and $3 million, respectively. Conversely, Germany, Hong Kong, Canada, and Switzerland faced outflows of $29 million, $23 million, $14 million, and $13 million, respectively.

While many providers reported minor inflows, these were overshadowed by a significant $153 million in outflows from Grayscale. Weekly trading volumes surged by 43% to $6.2 billion, though this figure is still below the $14.2 billion average for the year.

Yet, although a generally positive sentiment towards crypto could be seen this year, blockchain equities have suffered, with outflows reaching $545 million, accounting for 19% of assets under management.