Ethereum (ETH) has experienced significant outflows from institutional investors in 2023, with sales reaching over $108 million year-to-date.
Ethereum Is The Most Sold Over This Year
Ethereum (ETH) has experienced significant outflows from institutional investors in 2023, with sales reaching over $108 million year-to-date, making it the most sold digital asset among large entities.
CoinShares' analysis revealed that Ethereum had $4.8 million in outflows in the past week alone. Among exchange-traded product (ETP) investors, Ethereum is the most sold over this year, surpassing Tron by more than $50 million.
However, the situation may soon change with Ark Invest, led by Cathie Wood, applying for the first Ethereum exchange-traded fund (ETF) in the United States. This comes as Ethereum faces challenges such as inflationary changes to the network and declining on-chain activity due to the ongoing bear market.
According to CoinShares' weekly report, attitude towards institutional crypto purchases remains negative. According to the data, outflows totaled $59 million in the previous seven days, marking the fourth straight week of selling. The key reason for the selling is the rise of the US dollar, which is being driven by market expectations of a soft landing scenario. However, as the year passes and high interest rates become a factor, the attitude may shift.
Trading volume for Ethereum has also decreased, with daily volumes averaging $2.3 billion over the last month, compared to a yearly average of $7 billion. This indicates a dearth of investor interest, similar to the market before to the past two Bitcoin halvings. Meanwhile, Bitcoin witnessed $69 million in outflows last week, while short products saw huge inflows, likely due to regulatory uncertainty.
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