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Due to the volatility of Bitcoin seen in the last few weeks, many suspected the flagship crypto asset to plunge. However, it has been reported that Ethereum investment products have experienced major outflows in the past week.
According to reports, the ETH investment products have seen a record outflow of $50 million, which indicates a possible bearish momentum among the institutional investors.
This is a monumental shift for Ethereum, which is currently trading at $2,162 (at the time of writing).
This has also shifted the attention of most crypto enthusiasts and investors towards Bitcoin, which is currently trading at $35,134 (at the time of writing).
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How Can This Impact Ethereum?
According to the reports shared by CoinShares, the Ethereum investment products have experienced outflows for three consecutive weeks. During the first week of June, an outflow of $64.3 million was reported for the ETH investment products.
It was also reported that $943 million flowed in ETH investment products since the beginning of this year. However, the outflows noted for Ethereum have quite clearly exceeded that of BTC, which slowed down at $1.3 million. This has given rise to a possible bearish sentiment among the institutional investors, which can turn out to be damaging for the ETH network.
It has also been reported that the overall crypto products sector has seen outflows for the fourth consecutive week. The details being:
- $44 million outflowed from the sector in the last 7 days
- $313 million has been withdrawn from the institutional crypto products since mid-May
CoinShares also stated:
“Multi-digital asset investment products continued to buck the negative trend with inflows of US$6m last week, suggesting that investors continue to favour digital assets but are keen to diversify.”
After the exit of such a large amount from the ETH investment products, many ETH and BTC enthusiasts are left to wonder how this affects the Ethereum network?
The ETH investment products were noticeably outperforming BTC in the last few months. However, it seems that the interest of institutional investors may be fading from the second-largest crypto asset.
Does This Indicate an Upward Momentum for BTC?
Some funds, including Grayscale, have seen minor inflows to the BTC investment products, which has indicated mixed opinions of the institutional investors towards the flagship crypto asset.
Bitcoin and Ethereum have been the top two digital assets in the market. Many crypto enthusiasts have been anticipating a time where BTC might be outperformed by ETH.
However, considering the record outflow of $50 million from ETH investment products, the tables might be turned to some extent.
Nevertheless, which crypto asset will come out on top will be revealed in time.
Until then BTC and ETH are the top two crypto assets and the one you choose to invest in depends on your personal preference. In either case, whether you choose Bitcoin or Ethereum, make sure you use the safest crypto exchanges.
As a crypto trader, using a secure exchange such as the Bybit exchange is equally important. Click on Bybit and start margin trading with a free bonus today.
