Institutional Investors Are Leaving Ethereum Products: What’s Happening?
Ethereum products are facing a significant downturn due to market correction as sentiments decline. Institutional investors continue to be the driving force behind crypto assets and have increased their investments year-to-date (YTD). While annual crypto rallies have been linked to institutional activity following the approval of spot Bitcoin ETFs, outflows are due to massive sell-offs triggered by macro factors.
Ethereum products fell as traditional investors reacted to the price drop last week. Total outflows dampened hopes for a bullish rally, but expectations for a spot ETF listing in the summer resonated with educators. Let’s take a look at how Ethereum products are faring so far.
Ethereum Products Check Out
crypto in general corporate funds Last week saw an outflow of $585 million due to the negative effects of the correction. Ethereum products recorded an outflow of $58.3 million in the last seven days. This brings this month’s total inflows down to $23.6 million, while YTD flows remain at $36 million.
This weekly decline erased the accumulated inflows following this year’s bounce. Bitcoin ETFs and the expectation for Ethereum products. With the approval given, investors are awaiting their potential listing, making them a window to invest in the asset class. Interestingly, Ethereum products still have cumulative assets under management (AUM) of $14.7 billion. This growth reflects the level of inflow seen at the market highs in the first quarter of 2024.
Ethereum was not the only asset to see outflows in institutional products, as Bitcoin recorded the majority of outflows. Last week, Bitcoin funds lost $630 million, dropping AUM to $70.6 billion
Ethereum Price Impact
The main reason for the current market situation is the decline in the price of crypto assets. Due to the bearish outlook, total market capitalization fell from $2.6 trillion to $2.26 trillion. ETH is trading at $3,387, down from $3,700 at its peak. Ethereum ETF Expectation. Even though the price remains low, investors are pointing to future highs if macro factors reverse. These price crashes led to exits on the corporate front.
So read: Analysts Predict 100% Increase as Altcoins Rise Approaches
✓ Share:
David is a financial news writer with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has a talent for keeping up with breaking news. Staying on top of trends, David is knowledgeable about regulations, partnerships, crypto assets, stocks, NFTs, etc. He reported in various fields such as. Away from the financial markets, David cycles and rides horses.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Institutional #Investors #Leaving #Ethereum #Products #Whats #Happening
