Ethereum investments continue a ‘turn-around in sentiment’

abdelaziz Fathi

Bitcoin posted a mild weekly outflow as institutional investors continued to pull money out of cryptocurrency products and funds amid an ongoing decline in prices, data from digital currency manager CoinShares shows.

CoinShares’ weekly survey of cryptocurrency investments shows that net outflows hit $9 million last week, bringing total outflows in this 4-week run to $22 million. Regionally, the outflows were focused on the US, Germany & Sweden totaling $10 million, $2.4 million and $2.1 million respectively. Minor inflows were seen in Brazil and Switzerland at $2.5 million and $1.9 million respectively.

Bitcoin led the tally with $15 million outflows during the week, the third weekly outflow in a row, totaling $15 million on a year-to-date basis. With overall sentiment on cryptocurrencies turning cautious as the digital asset’s rally hit a wall, CoinShares writes that it is difficult to ascertain the precise reason for this other than the hawkish rhetoric from the Federal Reserve and the recent price decline.

The decline in August, noted the asset manager, also came as the summer doldrums persist for now.

That said, CoinShares notes that Ethereum bucked the negative trend with inflows totaling $3 million, the largest of all crypto assets the company tracks. From a relative perspective, however, the second largest cryptocurrency in terms of market capitalisation remains the focus of negative sentiment with YTD outflows representing $297 million of AuM.

“At the mid-point in June Ethereum investment products had seen year-to-date outflows totalling $459m. Since this point, as there has been improving clarity on the Merge, Ethereum has seen a 9-week run of inflows totalling $162m ” said CoinShares’ investment strategist James Butterfill.

Altcoins saw unremarkable inflows

Breaking down the latest statistics, Coinshares said minor outflows were seen in a few altcoins’ investment products. Most notably, Cardano registered weekly inflows of $0.5 million, while Solana saw outflows for a second week totaling $1.4 million.

Blockchain equities also succumbed to the negative sentiment with outflows coming in at $1.6 million last week.

CoinShares is Europe’s largest digital asset investment firm. The company’s ETPs aim to offer a low-cost product providing regulated access to crypto tokens, whilst benefiting from the institutional grade security and 100% physically backed features that match other ETC securities.

Revenue at CoinShares fell in the second quarter from the previous one, weighed down by a decline in institutional investors’ interest in cryptocurrency trading.

In terms of its net income, Coinshares reported a loss of £0.1 million in the quarter ending June 30 from a positive income of £26.6 million the previous years. That was Coinshare’s its first negative quarter since going public in March 2021.

The company attributes the net loss to its TerraUSD (UST) holdings. The London-based firm recorded an “exceptional” loss of £17 million (roughly $21.4 million) from its exposure to Terra’s token when it exited its UST position.

Read this next

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

Industry News

ESG: Australian regulator wins first greenwashing court case against Vanguard

Vanguard admitted that a notable portion of the securities within both the Index and the Fund did not undergo the promised ESG scrutiny.

<