Ethereum investments continue a ‘turnaround in sentiment’

Ethereum investments continue a ‘turnaround in sentiment’

Bitcoin saw a slight weekly outflow as institutional investors continued to pull money out of cryptocurrency products and funds amid continued price declines, according to data from digital currency manager CoinShares.

CoinShares’ weekly cryptocurrency investment survey shows that net outflows reached $9 million last week, bringing total outflows during this 4-week period to $22 million. Regionally, releases focused on the United States, Germany, and 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 outflows of $15 million during the week, the third straight weekly outflow, totaling $15 million year-to-date. While the general sentiment on cryptocurrencies is turning cautious as the digital asset’s rally hits a wall, CoinShares writes that it’s hard to pinpoint the precise reason for this other than hawkish rhetoric from the Federal Reserve and the recent price drop.

The August decline, the asset manager noted, also came as the summer slump persists for now.

That said, CoinShares notes that Ethereum bucked the negative trend with inflows totaling $3 million, the largest of any crypto asset tracked by the company. From a relative perspective, however, the second-largest cryptocurrency by market capitalization remains at the center of negative sentiment with YTD outflows accounting for $297 million of AuM.

“At the midpoint in June, Ethereum investment products had seen year-to-date outflows totaling $459 million. Since that point, as the merger has improved, Ethereum has seen a 9-week inflow streak totaling $162 million,” said CoinShares investment strategist James Butterfill.

Altcoins have seen unremarkable inflows

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

Blockchain stocks also succumbed to negative sentiment with outflows of $1.6 million last week.

CoinShares is the largest digital asset investment company in Europe. The Company’s ETPs aim to offer a low-cost product offering regulated access to crypto tokens, while boasting institutional-grade security and 100% physical functionality that matches other ETC securities.

CoinShares’ revenue fell in the second quarter compared to the previous one, weighed down by a drop in interest from institutional investors in cryptocurrency trading.

In terms of net income, Shares recorded a loss of £0.1m in the quarter ending June 30 compared to positive income of £26.6m in previous years. It was Coinshare’s first negative quarter since its March 2021 IPO.

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


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