Over the past week, institutional demand for Ethereum appears to have slowed significantly, as no influx of fresh capital was recorded on any day of the week.
Data provided by SosoValue shows that the Ethereum ETFs have recorded a total weekly outflow of $65.65 million, marking the highest weekly withdrawal recorded since January.
Ethereum sees slowed institutional demand
While the last week has proven to be the poorest week the Ethereum ETFs have witnessed since January, the asset saw mixed price action.
This suggests that the brief rally seen on some days of the week might have been driven by market hype or sentiment and not demand from investors, especially institutions.
Nonetheless, the extended withdrawals seen on all days of the week suggest that institutional investors are taking caution and are hesitating to lock their funds in the Ethereum-based investment product.
The highest outflow was seen on Tuesday, May 12, when the funds recorded a total of $130.62 million in outflows within 24 hours, as market sentiment turned negative.
Apparently, it appeared that the brief price rallies witnessed on some of the days could not drive institutional interest in Ethereum, causing the steady withdrawals seen throughout the week.
BlackRock maintains lead
BlackRock has not only established its leadership in the Bitcoin ETF market, but also in the Ethereum ETF ecosystem as ETHA, its Ethereum ETF, accounted for the highest outflow recorded on each day of the week.
Although the broader momentum is weak and no inflow was seen throughout the week, BlackRock still positions itself as a key player in the Ethereum ETF market.
Dan Burgin
U.Today Editorial Team
