Institutional Investors Are Leaving Ethereum Products: What’s Happening?
Ethereum products face a significant downturn based on the market correction as sentiments fall. Institutional investors remain a driving force behind crypto assets and have increased investments year-to-date (YTD). While yearly crypto highs are linked to institutional activities following the approval of spot Bitcoin ETFs, outflows are due to massive sell-offs sparked by macro factors.
Ethereum products have taken a tumble as traditional investors reacted to the price drop last week. Total outflows dampened hopes of a bullish rally however, expectations of a spot ETF listing in the summer resonate with instructors. Let’s delve into how Ethereum products fared so far.
Ethereum Products See Outflow
Generally, crypto institutional funds saw outflows last week with $585 million exits as the correction stings. Ethereum products recorded $58.3 million outflows in the last seven days. This reduced the total inflows this month to $23.6 million while YTD flows stood at $36 million.
This weekly decline wiped out accumulated inflows this year following the jump after Bitcoin ETFs and anticipation towards Ethereum products. With the approval given, investors await potential listing of these which becomes an investment window to the asset class. Interestingly, Ethereum products still have a cumulative $14.7 billion in assets under management (AUM). This growth shows the level of inflow marked in Q1 2024 during the market highs.
Ethereum wasn’t the only asset with exits in its institutional products as Bitcoin recorded the bulk of outflows. Last week, Bitcoin funds saw $630 million in losses plunging the AUM to $70.6 billion
Ethereum Price Impact
The major cause of the present market situation is the declining price of crypto assets. The total market cap dropped from $2.6 trillion to $2.26 trillion amid the bearish outlook. ETH trades at $3,387, falling from $3,700 at the peak of Ethereum ETF anticipation. Although the price remains low, holders point to future highs should macro factors flip. These price crashes led to outflows on the institutional front.
Also Read: Analysts Predict 100% Surge As Altcoins Rally Nears
- GraniteShares 3x XRP ETF Can Trigger ‘Panic Buying XRP’ Says Expert
- TRUMP Token Gets Major Boost as Issuer Launches $200 Million Treasury Plan
- Gold Vs Bitcoin – Peter Schiff Predicts BTC Will Be ‘Rugged by Gold’
- CEA Industries’ BNB Holdings Reach 480K as Binance Coin Hits New ATH of $1,300
- Peter Brandt Predicts XRP Could Drop to $2.2 If This Happens
- ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?
- Ethereum Price Could Soar to $6,500 as BlackRock’s ETF Nears $20B Milestone
- Cardano Price Consolidates Below Key Resistance Ahead of ETF Verdict — Is a 50% Rally in Sight?
- Solana Price Eyes 56% Rebound Amid Solana Company’s Massive $530M SOL Acquisition
- Ethereum’s Price Bullish Cycle Resumes as Grayscale Launches Spot Staking ETPs – Is $7,331 Next?
- Pi Network Price Risky Pattern Points to Crash as 14M Coins Leave OKX
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
