Ethereum investment products continued to be the worst-performing for institutional investors in 2022. ETH products have lost nearly $169 million in institutional investment so far this year
The Worst-Performing Products For Institutional Investors In 2022
Outflows from crypto investment products slowed slightly last week, owing to a slight improvement in sentiment among institutional crypto investors. However, outflows of $16.9 million were seen in Ethereum, the world’s second-most popular digital asset.
Ethereum investment products continued to be the worst-performing for institutional investors in 2022. So far this year, the world’s second-most popular digital asset products have lost nearly $169 million in institutional investment, compared to $252 million in Bitcoin products.
“Ethereum continues to struggle, with outflows totaling US$16.9 million in the third week, bringing year-to-date outflows to US$169 million. Last week, outflows from digital asset investment products slowed to US$7.2 million, bringing the total outflows in this three-week period to US$219 million. Despite recent deterioration in sentiment, year-to-date flows have remained positive at US$389 million, despite some asset divergences. “Bitcoin saw minor inflows totaling US$2.6 million last week, but month-to-date outflows remain at US$178 million”
— CoinShare ResearchApart from large outflows from Ethereum products, institutional investors showed a significant increase in interest in altcoins last week.
Avalanche, Solana, Terra, and Algorand are among the digital assets that have attracted significant investment. So far this year, inflows into multi-asset products have totaled around $146 million.
Crypto Investment Products
Due to a market correction in the first quarter of 2022, the total number of crypto investment products launched fell dramatically compared to the same period last year.
“The overall number of investment product launches has cooled, with only 11 in Q1 2022 versus 24 in Q4 2021. Of the 23 different investment products by asset type, 10 were launched this year. There has been a focus on altcoins, most notable of which were Avalanche, Tezos and Terra with US$49m, US$30m and US$16m of assets under management respectively. Despite the threat of global rising interest rates and its broad negative price impact on technology companies last week, blockchain equities saw minor inflows last week totaling US$3m”
— Coinshare Research