BlockNews
FOLLOW ON X
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
  • CRYPTO
  • FINANCE
  • POLITICS
  • MEMECOINS
  • NFT
  • TECHNOLOGY
  • OPINION
No Result
View All Result
BlockNews
Home CRYPTO

Coinshares Reports Ethereum On Shaky Ground As Institutional Investors Move Away

by BlockNews Team
September 13, 2023
in CRYPTO, FINANCE, MEDIA
Reading Time: 3 mins read
A A
1
SHARES
21
VIEWS
Share on XShare in TelegramShare on Reddit
  • Ethereum experienced substantial outflow with $108 million sold off by institutional investors in 2023, with the most significant losses seen in North America and Europe.
  • Cathie Wood’s Ark Invest files for the first Ethereum ETF in the US, hinting at a possible shift in market sentiment amidst a challenging economic year.
  • The crypto market faces unpredictable dynamics with decreased trading activity and large digital asset funds adopting a cautious stance.

According to recent analyses by CoinShares, there has been a substantial outflow from Ethereum investments, with institutions parting with a significant volume of the asset. Ethereum has seen a staggering $108 million worth of its assets sold off in 2023, rendering it the “least loved digital asset” among institutional players, a title that no asset desires.

James Butterfill, the head of research at CoinShares, shed light on this situation, pointing out a widening gap between Ethereum and the second-most divested asset, Tron, which lags by over $50 million in institutional sell-offs.

According to the analysis, the past week alone recorded a $4.8 million outflow from Ethereum investments. The broader market reflects a troubling sentiment, with institutions showing a marked tendency to sell-off assets, evidenced by four consecutive weeks of net sales culminating in a $59 million outflow in the last week.

The geographical breakdown of this trend has North America at its helm, with substantial sales coming from the U.S. and Canada, shedding $12.3 million and $17.6 million, respectively. Europe isn’t far behind, led by Germany with a $20 million divestiture.

Can Ark Invest Turn the Tide?

Despite the prevailing downward trend, there’s a shimmer of optimism on the horizon, ignited by Cathie Wood’s Ark Invest’s bold move to file for the first Ethereum ETF in the United States. This step could potentially recalibrate the prevailing sentiment, more so in light of the network’s recent inflationary shift and the decreased on-chain activity spurred by the persistent bear market.

Moreover, Butterfill highlights an essential factor playing into the massive sell-offs — a strengthened U.S. dollar buoyed by the market’s belief in a “soft landing scenario.” However, as 2023 progresses towards its end, skepticism around this belief is mounting, with predictions of a change in tide, especially if high interest rates become a reality.

Market Dynamics: A Complex Web of Factors

The crypto market finds itself entangled in a complex web of varying dynamics, from under-the-surface trading fluctuations to regulatory undulations impacting investor sentiment. An illustrative point is the decreased trading activity, plummeting 73% to a low of $743 million over the past week, a number termed “super low” compared to the yearly average of $7 billion.

Looking at the Bitcoin landscape offers further insight, with significant withdrawals despite previously green figures, indicating a cautious approach from large digital asset funds, possibly awaiting the Federal Reserve’s next move on interest rates.

As we navigate through this period of uncertainty, the picture remains complex and multi-faceted. Despite the current pessimistic outlook, the tides could change, influenced by a constellation of factors including regulatory decisions, CPI fluctuations, and Ark Invest’s groundbreaking initiative.

Tags: CoinShareethereumInstitutional Investors
TweetShareShare
Previous Post

Vitalik Buterin Reveals the Hack on His X Account Was Due to a SIM-swap Attack

Next Post

Texas Steers Digital Asset Progress with New Crypto Alliance Launch

DON'T MISS THESE! HOT OFF THE PRESS

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth
CRYPTO

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance
CRYPTO

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing
CRYPTO

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself
CRYPTO

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape
CARDANO

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish
BITCOIN

$10 Trillion Asset Manager Charles Schwab Confirms Bitcoin and Ethereum Trading: Here is Why This is Bullish

July 18, 2025
Load More

Related News

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

Is Polkadot Dead or Just Getting Started? Here is the Shocking Truth

July 18, 2025
President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

President Trump Says Crypto is Good for the Dollar, Claiming Genius Act Will Ensure America’s Dominance

July 18, 2025
President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

President Trump Officially Signs Genius Act Into Law: Here is Why This is Game Changing

July 18, 2025
Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

Trump Signs Genius Act Stablecoin Act, Says They Named the Bill After Himself

July 18, 2025
Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

Clarity Act Passes House: Cardano Eyes Commodity Status as New Crypto Rules Take Shape

July 18, 2025
Twitter Telegram Threads

BLOCKNEWS.COM

BlockNews

BlockNews.com is your premier source for real-time cryptocurrency, blockchain, and financial market news.

Our mission is to deliver accurate, timely, and insightful information to help both seasoned investors and newcomers navigate the evolving digital economy.

With in-depth analysis, exclusive insights, and up-to-date news, BlockNews.com keeps you informed on the latest trends in crypto, DeFi, NFTs, tech, and beyond.

Stay ahead of the herd with BlockNews.com

RESOURCES

  • About
  • Contact Us
  • Terms and Conditions
  • Privacy Policy

POPULAR TOPICS

$ADA $XRP AI Avalanche Binance Bitcoin Bitcoin ETF blackrock Blockchain BTC Business Cardano Chainlink China Coinbase Coinglass crypto cryptocurrency Crypto Exchange Crypto Regulation DeFi Dogecoin Donald Trump Elon Musk ETF eth ethereum Federal Reserve FTX grayscale Memecoin metaverse Microstrategy NFT NFTs PEPE ripple sec Shiba Inu Solana Stablecoin US Web3 X xrp

GET QUICKER UPDATES ON X

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.

No Result
View All Result
  • HOME
  • CRYPTO
  • MEMECOINS
  • TECHNOLOGY
  • POLITICS
  • FINANCE
  • NFT
  • DEFI
  • GUIDES

© 2022-2025 BlockNews.com - Crypto and NFT news website by Aiur Labs.