Ethereum saw record outflows last week, as investors pulled $13 million from the second largest cryptocurrency | Currency News | Financial and Business News
- Investors pulled $12.7 million from ethereum investment products last week, according to data from CoinShares.
- The outflows mark a record high for ethereum after the cryptocurrency served as a ‘stalwart’ during bitcoin’s recent slide.
- Bitcoin outflows are showing signs of cooling.
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Ethereum products were hit with outflows of $12.7 million in early June, the biggest decline on record as institutional investors were working out their views on the blockchain’s digital token after serving as a pillar of support during bitcoin’s recent plunge.
The data from CoinShares, a digital currency management firm, came in an update published Monday which also said outflows from digital assets last week reached $21 million, marking a second straight week of negative net investment.
The moves in ethereum marked a shift from the prior week when inflows were $33 million, illustrating that the ether token remained the top choice in so-called altcoins among investors.
“Ethereum has been the stalwart relative to bitcoin over recent months but inflows over the course of last week were mixed, implying mixed opinions amongst investors,” said CoinShares in its update. The price of ether dropped about 12% in the week ended June 11 and fell below $2,400.
Bitcoin, the world’s most traded cryptocurrency, was rocked by a recent selloff that began in May stemming in part from threats from China about cracking down on mining and trading and cryptocurrency taxation efforts by US officials.
But bitcoin outflows of $10 million last week were sharply less than the prior week’s record decline of $141 million. Trading activity in bitcoin investment products rose by 43% compared with the previous week, said CoinShares.
Total weekly outflows in digital products have reached $267 million since mid-May, which represents 0.6% of total assets under management.
“While sentiment has weakened over the last month investors on the whole remain committed given the magnitude of inflows seen this year which represent 13% of AuM, or $5.8 billion,” a figure that nearly matches the $6.7 billion logged in 2020, the company said.
Bitcoin this week has jumped above $40,000 after Elon Musk tweeted that Tesla would accept bitcoin payments again once mining can be done using cleaner energy. Meanwhile, ether’s price advanced and flirted with $2,600.