As a researcher with a background in digital asset investments, I find the recent trends in the market intriguing. The inflow of $130 million into digital assets over the past week is a positive sign, but the lack of action from US regulators regarding spot Ethereum ETF applications has caused uncertainty and significant outflows for Ethereum-related investment products.
Last week marked the first increase in digital asset investments in five weeks, amounting to a net income of $130 million.
From my perspective as an analyst, the absence of a decision from US regulatory bodies on Ethereum spot ETF applications has fueled widespread conjecture that approval may not be imminent. Consequently, there has been a notable exodus of funds from Ethereum in recent times.
Investors Brace for Delay in Spot Ethereum ETF Approval
The latest weekly report from CoinShares revealed that Bitcoin investment products attracted approximately $144 million in new investments, bouncing back after a slow month. However, Short-Bitcoin Exchange Traded Products (ETPs) recorded outflows of around $5.1 million, accumulating total outflows over the past eight weeks to reach $18 million.
Among the various altcoins, Solana distinguished itself with approximately $5.9 million in weekly inflows. In contrast, there’s increasing buzz that Ethereum spot ETF applications won’t be approved by US regulators soon. This suspicion is reflected in substantial outflows exceeding $14 million last week.
As a crypto investor, I’ve noticed that Polkadot-focused investment products have attracted significant interest lately, with approximately $1.3 million flowing in. Following closely behind were XRP and Litecoin investors, who contributed around $0.6 million and $0.1 million respectively to these markets.
As a crypto investor, I’ve noticed that the trading volumes for Exchange-Traded Products (ETPs) have seen a significant decrease lately. Last week, only $8 billion worth of these products were traded, which is quite a drop compared to the average $17 billion traded during April.
Grayscale Leads US Inflows
Based on the asset manager’s perspective, this decrease implies that ETP (Exchange Traded Product) investors must now adopt a more hands-on approach in the cryptocurrency market, as they account for only 22% of the total trading volumes on international exchanges – a significant drop from the 31% share recorded last month.
With regard to geographical distribution, the United States took in the greatest amount of approximately $135 million. Notably, Grayscale experienced the smallest weekly withdrawals since January, amounting to around $171 million. Switzerland reported inflows worth about $14 million.
Last week, Hong Kong saw a historic surge in investments, bringing in approximately $19 million. This figure is significantly lower than the substantial inflows recorded in the initial week following the debut of Bitcoin ETFs, implying that much of the early investment was seed capital. In contrast, Australia and Brazil experienced relatively small inflows during the same timeframe, with just over $0.7 million and $0.3 million respectively.
As an analyst, I’d rephrase it as follows: Canada and Germany each saw withdrawals amounting to $20 million and $15 million respectively, adding up to a total year-to-date outflow of $660 million for the two countries. Sweden reported weekly outflows of $4.8 million.
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2024-05-14 23:33