Institutional investors have market outflows from Ethereum products ahead of the two incoming deadlines for spot ETF applications. Recent Coinshares data show continued outflow from Ethereum’s institutional products last week amid anticipation for spot Ethereum ETFs in the United States.
Ethereum saw outflows of $23 million in the last seven days adding to $14 million exits recorded the previous week. These red numbers amid inflows to Bitcoin products have raised concerns for the asset position as the market fluctuations continue.
Analysts Point to Declined ETF Sentiment
The Securities and Exchange Commission has remained skeptical of crypto assets citing regulatory concerns. This has led to intense scrutiny of spot ETF applications with the regulator constantly pushing the approval dates. This month, ArkInvest and 21Shares removed staking as firms try to meet the Commission’s requirements.
The financial regulator also shifted and extended the approval dates of Galaxy, Invesco, and BlackRock respectively. While the status quo remains, big days are upcoming for the SEC. The market awaits the SEC’s decision for VanEck and 21Shares applications due on May 23 and May 24 respectively
Outflows were seen last week due to reduced sentiments and low changes of approvals projected by market analysts. Bloomberg analyst, Eric Balchunas projected a 25% chance of approval amid similar expectations. This led to a plunge in sentiments with Ethereum price moving sideways amid a jump in other crypto assets.
Sentiments Flip For Ethereum Products Today
Previous week’s outflows from Ethereum’s institutional products might not be seen this week as positive sentiments cloud the market. Balchunas and James Seyffart have increased the chances of approval to 75%.
“Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (an increasingly political issue), so now everyone scrambling (like we everyone else assumed they’d be denied). See Nate’s tweet below for probably order of events.”
Similarly, approval chances on Polymaket also jumped 50% as sentiments surged. At press time, ETH trades at $3,672, an 18% jump in the last 24 hours.
Also Read: 3 Crypto Assets To Sell Today Before Bearish Sentiment
The post Why Are Institutional Investors Walking Away From Ethereum’s Products? appeared first on CoinGape.
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