Ethereum is the ‘least-loved digital asset’ this year, CoinShares report shows
Crypto.news – The European alternative asset manager, CoinShares, reports outflows of $4.8 million the previous week, making it the least loved digital asset for ETP investors.
This brings year-to-date outflows at $108 million, or 1.6% of assets under management (AuM) as of the Sept. 11 report.
The weekly report highlights that in the last week, digital investment products saw outflows totaling $59 million, marking the fourth consecutive week of outflows. At the same time, inflows were mostly evident in short investment products, suggesting that, as a whole, sentiment is poor for the asset class, despite previous reports suggesting Grayscale ETF optimism was bolstering market sentiment.
Blockchain equities also share in the same negative sentiment, with $10.8 million in outflows this week, in what is the 5th consecutive week of outflows.
Weekly Crypto Outflows | Source: CoinShares
However, while the majority of altcoins saw outflows, with Ethereum (ETH) called “the least loved digital asset amongst ETP investors this year,” and Polygon (MATIC) reporting outflows of $3.2 million, (SOL) saw the opposite, with inflows of $0.7 million for the 9th consecutive week.
That isn’t to say this is a strong enough indicator for a change in sentiment, as trading volumes dropped by 73% in comparison to the previous week, where it now sits at $754 million for the week. This drop is believed to be linked to the uncertainties around asset class regulation and recent dollar strength.
Getting behind FSB recommendations
With digital currency regulation still underway, the latest developments included a Sept. 9 report highlighting that leaders from G20 nations have thrown their weight behind the Financial Stability Board’s recommendations regarding the regulation of crypto.
The announcement was confirmed by Nirmala Sitharaman, the Indian Finance Minister, at the New Delhi Leaders’ meeting. While the meeting concluded with the resolve to ensure safe virtual ecosystems and inclusivity, a lot of uncertainty about the next steps still persists.
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