Ethereum suffers yet another weekly outflow, but how did BTC perform
- Ethereum outflows were on the high side but Bitcoin shied away from a similar fate.
- Other altcoins joined the BTC trend but investors remained wary of ETH.
For the third straight week, Ethereum [ETH] investment products failed to attract the purses of digital asset investors, CoinShares’ 27 March report revealed.
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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.
ETH stuck, BTC finds an escape route
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 largely due to the instability in the traditional finance sector.
However, the trust issues with the banking sector seem to have resulted in gains for the crypto ecosystem. By and large, the overall inflow totaling $160 million was the highest since July 2022.
This hike implies that the level of 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:
“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.”
Until Shanghai leaves the stage
But why has Ethereum failed to take a significant share of the input since it was the second-largest cryptocurrency in market value? Well, the long-standing investment group opined that Ethereum’s decline could be due to several factors. And like CoinShares opined last week, the Shanghai upgrade topped the list. The trading firm pointed out,
“We believe investor jitters around the Shanghai upgrade (expected 12th April) are the most likely reason”
The event, expected to happen in a few weeks, would set the grounds for staking withdrawals which could, in turn, result in 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 instance, Ripple [XRP], which outperformed several cryptocurrencies in the past week got inflows worth $1.2 million.
Polygon [MATIC], and Solana [SOL] received inflows worth $1.9 million and $4.8 million respectively.