According to CoinShares’ 27 March report, Ethereum [ETH] investment products failed to attract the purses of digital asset investors for the third week in a row.
According to the report duly delivered by James Butterfill, the altcoin faced the same fate as that of the previous weeks, seeing a $5.2 million outflow. However, products linked to Bitcoin [BTC] had the opposite experience as the inflow was as high as $127.5 million. Every week, CoinShares discloses the activities with respect to crypto Exchange Traded Products (ETPs) across several countries.
But before the latest report, both Bitcoin and Ethereum were on the same page. This was primarily due to insecurity in the traditional finance sector. However, the crypto ecosystem appears to have benefited from the banking sector’s trust issues. Overall, the total inflow of $160 million was the highest since July 2022.
This increase suggests that trust in crypto products was high at the expense of traditional institutions’ offers. CoinShares was of the same view even though it admitted that the inflows were relatively low at the beginning of the previous week. The report stated: \s“While the inflows came relatively late compared to the broader crypto market, we believe it is due to increasing fears amongst investors for stability in the traditional finance sector.”
But, despite being the second-largest cryptocurrency in terms of market capitalization, Ethereum has failed to capture a significant share of the input. Well, the long-standing investment group opined that Ethereum’s decline could be due to several factors. And, as CoinShares predicted last week, the Shanghai upgrade was at the top of the list. “We believe investor jitters around the Shanghai upgrade (expected 12th April) are the most likely reason,” the trading firm stated.
The event, which is expected in a few weeks, would pave the way for staking withdrawals, which could lead to selling pressure. Besides that, recent Ethereum developments have not necessarily resulted in a positive price action. So, it could be valid that investors are being skeptic about committing funds to products related to the altcoin.
However, Bitcoin was not the only claimant with respect to improved inflow as some other altcoins joined the fray. For example, Ripple [XRP], which outperformed several cryptocurrencies in the last week, received $1.2 million in inflows. Polygon [MATIC] and Solana [SOL] both received $1.9 million and $4.8 million in inflows, respectively.