Institutions turn bearish on ETH as record $ 50 million exits Ether investment products

Ethereum investment products have seen a record $ 50 million outflow over the past week, suggesting a bearish sentiment among institutional investors.

According to CoinShares’ Digital Asset Fund Flows Weekly report, Ether products have now seen outflows for three consecutive weeks, with $ 64.3 million exiting the sector since the week of June 6th.

Despite the drawdowns, $ 943 million has been poured into Ether investment products since early 2021.

The crypto investment products sector saw total outflows for the fourth straight week, with $ 44 million out of the sector in the last seven days. The report estimates that $ 313 million has been withdrawn from institutional crypto products since mid-May.

While crypto products saw largely outflows for the past week, Ether experienced the largest outflow, with Bitcoin outflows slowing to $ 1.3 million – down from $ 89 million the previous week. There have now been seven consecutive weeks of BTC outflows since the beginning of May.

Some funds saw minor inflows into their Bitcoin products, including Grayscale, suggesting mixed sentiment among investors regarding BTC.

CoinShares also noted that multi-assets continue to buck the trend by re-registering weekly inflows, stating:

“Multi-digital asset investment products continued to buck the negative trend last week, with inflows of $ 6 million, suggesting investors continue to favor digital assets but are interested in diversification.”

Exposure to institutional crypto investment products hit record highs during the peak of the bull market earlier this year, but investors took profits during the downturn.

Second and third largest crypto asset managers, CoinShares and 3iQ, saw the highest total asset outflows for the week at $ 56.4 million and $ 27.1 million, respectively. Industry leader Grayscale stayed relatively stable with a modest inflow of $ 1.3 million for the week.

Ethereum investment products had outperformed Bitcoin in recent months – with Ethereum products seeing inflows while BTC products suffered a decline less than a month ago – but institutional appetite for the world’s second largest crypto asset appears to be waning.

At the time of writing, ETH prices were trading 8.5% to $ 2,135 that day, while BTC changed hands for $ 34,900, after rising 1.8% in the past 24 hours, according to CoinGecko.

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