Ethereum (ETH) Funds See Ninth Straight Weeks of Outflows, Signs of Worry?

CoinShares, a provider of digital asset management and crypto investment tools, recently released a weekly report that gives a glimpse into the flow of net money into the crypto market last week. Last week until June 3, the net inflow of digital asset investment products was $ 100 million.

Ethereum (ETH) continues to suffer while Bitcoin (BTC) records a net inflow. The Ethereum Fund recorded a net outflow for the ninth straight week. As CoinShares explains:

“Ethereum continues to suffer, with a weekly outflow totaling US $ 32 million. Ethereum has endured nine consecutive weeks of outflows, which means it will withstand the negative sentiment of investors. However, since the spill began in December 2021, it is just under 7% of AuM’s total.

This may be a bit of a worrying sign for Ethereum, which indicates that investors are losing confidence in Bitcoin’s competitors. In last week’s report, CoinShares said investors prefer other altcoins to Ethereum.

Reduced advantage of Ethereum (ET) market

Ethereum (ETH) is part of this year’s brutal market sale. The main thing is that Ethereum’s market power has been steadily shrinking and is currently less than 18%. Meanwhile, the Bitcoin market’s dominance continues to grow.

This shows that during times of distress and bearish market conditions, investors usually consider Bitcoin to be a safe haven for Ethereum. The CoinShares report shows that Bitcoin saw a net inflow last week. The report states:

Bitcoin saw a total inflow of US $ 126 million last week. This brings the total inflow to date to US $ 506 million, just over $ 500 million.

This year’s Ethereum bet is high, as everyone is eager to upgrade “The Merge” on that platform. This week, developers will be testing a “merge” upgrade on the Ethereum Lopten Testnet. If successful, they shall apply the same to the mainnet by August 2022. Positive progress in this regard can further reinstate investor interest in Ethereum (ETH).

Boushan is a FinTech enthusiast and has a great talent for understanding financial markets. His interest in economics and finance draws his attention to the new emerging blockchain technology and cryptocurrency markets. He is continually in the learning process and remains motivated by sharing the knowledge he has acquired. In his free time he reads thriller novels and sometimes explores his cooking skills.

The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.