Professional investors have pulled as much ETH from Ethereum products as they did during the bear market. Meanwhile, Bitcoin ETFs are experiencing larger inflows.
In the past two weeks, Ethereum investment products saw outflows totaling $120 million, according to a recent CoinShares report tracking weekly flows from professional investors. This makes Ethereum the “worst performing asset of the year so far in terms of net outflows,” reminiscent of the 2022 bear market.
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These outflows come just before the start of trading in spot Ethereum ETFs in the US. The report indicates that Germany, Hong Kong, Canada, and Switzerland are seeing the largest reductions by professional investors. This trend suggests that investors in these regions are looking to reduce their risk ahead of the US spot products trading.
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Analysts predict that massive outflows from the Grayscale ETHE fund could occur once trading begins, potentially leading to a sharp sell-off in ETH, similar to the trend seen when the Bitcoin ETF started trading. Another explanation is that professional investors are pulling their capital from smaller ETPs to prepare for purchasing US spot products. Some even expect inflows in the billions, which could drive significant price growth.
CoinShares’ report highlights that the crypto market recorded a total of $30 million in outflows. Although this marks the third consecutive week of investor withdrawals from ETPs, the outflows are significantly lower than in previous weeks.
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In contrast, US Bitcoin ETFs have seen the largest capital inflows since June 7, according to data from SoSoValue. Investors poured around $130 million into products from Fidelity, VanEck, and others, with only BlackRock and Grayscale recording no new inflows. CoinShares also notes outflows totaling $4.2 million from short Bitcoin products, indicating a potential shift in market sentiment.
