Investment products based on Ethereum listed on the stock exchange are seeing significant outflows. Despite the upcoming launch of new ETH on ETH spot on USA stock exchanges, the last week of June saw the highest weekly outflow since August 2022.
The most popular investment product is the ETF, a single-asset fund fully collateralized in the underlying asset, whose shares are traded on the stock exchange. While there are no ETFs on Ethereum listed on US stock exchanges yet, their launch is expected soon. Additionally, there are other investment products available on non-US stock exchanges, such as ETPs on various cryptocurrencies.
CoinShares collects data on these investment products and recently reported a continuous outflow from Ethereum-based products. The outflow has also impacted the sentiment on Bitcoin. Overall, the last week of June marked the third consecutive week of outflows from digital asset investment products, with Ethereum experiencing the largest outflows since August 2022.
Bitcoin ETPs, on the other hand, have recorded net inflows over the year, contrasting with Ethereum’s net outflows. Solana and other cryptocurrencies like Litecoin, XRP, and Chainlink have seen net inflows in their ETPs, highlighting Ethereum as the only asset with net outflows.
The rise of Solana in the DeFi sector poses a potential competition to Ethereum, which has been a leader in decentralized finance. While Ethereum still holds a dominant position, Solana’s exponential growth in the DeFi sector is noteworthy. Other potential competitors like Avalanche and TON could emerge in the future, challenging Ethereum’s position in the market.