Ether Outflows Signal ETF Frenzy! What Investors Need to Know. Ethereum products see the highest outflows since August 2022, with $60 million in net outflows weekly ahead of the anticipated Ether ETFs launch.
As the U.S. Securities and Exchange Commission (SEC) prepares to approve Ether ETFs, investors appear to be repositioning their portfolios in anticipation of these new investment opportunities.
Key Points:
Record Outflows:
Ethereum-tracked exchange-traded products (ETPs) saw $60 million in net outflows each week over the past two weeks.
These outflows are the highest recorded since August 2022.
Investor Movements:
Professional investors withdrew over $120 million from Ether ETPs in the past fortnight.
Meanwhile, multiasset and Bitcoin ETPs experienced inflows of $18 million and $10 million, respectively, indicating a shift in sentiment.
Upcoming Ether ETFs:
Ether ETFs are expected to start trading soon in the U.S. following the SEC's approval of applicants' filings.
The SEC must still approve the S-1 filings before these products can be traded.
Market Projections:
Firms like Galaxy predict Ether ETFs could see $5 billion in net inflows within the first five months.
Bitwise forecasts $15 billion in net inflows for Ether ETFs over the first 18 months.
The primary demand is expected to come from independent investment advisers and broker/dealer platforms.
The substantial outflows from Ethereum products suggest a strategic repositioning by investors as the launch of Ether ETFs draws near. With the SEC's impending approval, the market is gearing up for significant inflows into these new products, potentially transforming the landscape for Ethereum investments.
Source: Coindesk