Professional investors have recently withdrawn over $120 million from exchange-traded products tracking ether (ETH), as reported by crypto firm CoinShares. The past two weeks saw significant net outflows of $60 million each, marking the highest outflows since August 2022. This movement in the market indicates a cautious approach towards Ethereum investments.
In contrast, multiasset and bitcoin (BTC) exchange-traded products experienced inflows of $18 million and $10 million, respectively, during the same period. These inflows suggest a potential shift in sentiment among investors, favoring a diversified investment approach.
Ethereum exchange-traded funds (ETFs) are on the verge of being available for trading in the U.S. following the recent approval of applicants’ filings by the Securities and Exchange Commission (SEC). However, before these products can hit the market, the SEC must also give the green light to their S-1 filings.
Industry experts, such as Galaxy and Bitwise, have made predictions regarding the potential impact of Ethereum ETFs on the market. Galaxy projects that these ETFs could attract $5 billion in net inflows within the first five months of trading, while Bitwise is even more optimistic with an estimate of $15 billion in inflows over the first 18 months.
The anticipated demand for these upcoming Ethereum investment products is expected to come from a diverse range of market participants, including independent investment advisers and broker/dealer platforms. The introduction of Ethereum ETFs is poised to provide investors with new avenues for exposure to the cryptocurrency market while offering regulatory oversight and investor protection.