Ethereum Faces Major Outflows, But Upcoming ETFs May Ignite Bullish Future

Digital asset investment products saw 3 weeks of inflows, but the last week had a small outflow. Ethereum investment has been negative recently, but a positive shift is expected due to upcoming ETFs. The crypto market is expected to rebound due to increased liquidity and positive historical trends.

Digital asset investment products experienced a mixed performance during the second quarter of 2024, according to the latest report by CoinShares. While the products saw three weeks of inflows, the last week saw a small outflow.

In total, digital asset investment products saw a net outflow of $30 million last week, as some investors booked profits following the recent rally in crypto prices. This marks a departure from the seven consecutive weeks of inflows that were observed prior.

Here are the key highlights:

Bitcoin’s investment products saw a cash inflow of about $10 million last week, lifting its AUM to a robust $67.57 billion.

Ethereum’s investment products experienced a significant cash outflow of approximately $60.7 million in the final week of June.

Solana (SOL) and Litecoin (LTC) reported modest inflows of $1.6 million and $1.4 million, respectively.

The United States led the charge in cash inflows, contributing approximately $43 million. Brazil and Australia followed with inflows of $7.6 million and $3 million, respectively.

Bitcoin’s inflows were a welcome sign, especially as the apex crypto has been lagging behind other assets in terms of performance this year.

However, Ethereum’s outflows were concerning, considering that the second-largest cryptocurrency has been one of the best performers in 2024. This outflow dampened the overall bullish outlook for ETH.

notable outflows from ether investment products, as evidenced by a net cash outflow of $60.7 million last week.

This brings Ethereum’s assets under management (AUM) to a total of $14.35 billion, and with the persistent outflow, it puts a damper on the overall bullish outlook for the second-largest cryptocurrency by market capitalization.

But on the bright side, Bitcoin’s investment products saw a cash inflow of about $10 million last week, lifting its AUM to a robust $67.57 billion.

Moreover, Solana (SOL) and Litecoin (LTC) reported modest inflows of $1.6 million and $1.4 million, respectively, signaling some positive momentum for these assets.

In terms of geographic distribution, the United States led the charge in cash inflows, contributing approximately $43 million.

This was followed by Brazil and Australia, with inflows of $7.6 million and $3 million, respectively, highlighting strong regional interest in digital assets.

notable is the upcoming introduction of spot ether ETFs in the United States, which is expected to ignite a wave of bullish sentiment for the second-largest cryptocurrency.

With billions of dollars poised to enter the Ethereum ecosystem in the coming months, the altcoin is well-positioned for a potential parabolic phase.

The global adoption of Web3 protocols and digital assets has bolstered overall crypto liquidity, and a rebound seems imminent.

Historically, July has been a bullish month for the crypto industry, reinforcing the positive outlook for the coming weeks.

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