In the world of cryptocurrency investment, Ethereum-based products have experienced a negative trend in outflows for the fourth week in a row. This is in contrast to other cryptocurrency-based investment products that have seen positive inflows. According to a report by CoinShares, Ethereum saw a staggering $22.5 million in outflows last week, which is quite different from most other leading altcoins. Digital asset investment products have seen positive sentiment, with inflows totaling $646 million last week. This brings the total inflows for the year to $13.8 billion, surpassing the previous record of $10.6 billion in 2021.
Despite the negative outflows experienced by Ethereum, other top altcoins have seen positive inflows. For example, Litecoin saw $4.4 million in weekly inflows, followed by Solana with $4 million and Filecoin with $1.4 million. It’s worth noting that the price of Ethereum’s native token, Ether (ETH), rose by 6.8% in just 24 hours, reaching $3,625. On a weekly basis, it increased by 2.3%, while it declined by 8.2% over the past month.
Solana, often considered one of the most promising “Ethereum killers” due to its scalability and high transaction throughput, has also outperformed Ether. Solana’s native token, SOL, has risen by 24% in the past month, while Ether has fallen by 6.2%, according to TradingView data.
While there have been positive inflows into digital asset investment products, investor appetite for exchange-traded funds (ETFs) may be declining. CoinShares suggests that ETF investors’ appetite is moderating as the weekly flow levels are not reaching the levels seen in early March. The volumes of ETFs in the past week declined to $17.4 billion, compared to $43 billion in the first week of March.
Since the approval of spot Bitcoin ETFs in January, these funds have accumulated over 834,000 Bitcoin, with a total value of $60.4 billion. This represents about 4.24% of the current Bitcoin supply. Short Bitcoin investment products have seen outflows for the third week in a row, totaling $9.5 million, indicating some “minor capitulation” among bearish investors, according to CoinShares.
It’s important to remember that even with outflows, Ethereum is still a major player in the crypto space. It’s too early to count it out!
The decline in ETF volumes might indicate a shift in investor preferences and strategies.
The rising popularity of Solana proves that there’s fierce competition in the race to be the top blockchain platform! 🏎️
Despite the negative trend for Ethereum, the overall positive sentiment in the market is reassuring! ✨