Investors show renewed confidence in ethereum-linked investment products
Investors have shown renewed confidence in ethereum-linked digital asset investment products, with a recent report by CoinShares revealing inflows of $17 million for the week ending April 21.
This marks a significant increase from the previous week’s $300,000 inflow, which is largely attributed to Ethereum’s blockchain upgrade on April 12.
The upgrade introduced new features, including allowing the withdrawal of staked ether, which was welcomed by investors. These staked ether tokens are deposited to support the operations of the Ethereum blockchain and typically earn passive income in the form of more tokens.
However, the report also shows that there were outflows of approximately $30 million in total investments in digital asset products last week, ending a six-week run of inflows.
Bitcoin outflows due to profit-taking
Bitcoin saw $53 million in outflows, which is a significant shift from the $310 million inflows recorded in the previous four weeks. This was attributed to profit-taking, as bitcoin reached the psychological level of $30,000 without any macroeconomic triggers.
Token Unlocks data indicated that since the April 12 upgrade, approximately 1.66 million staked ether worth $3.04 billion were withdrawn, with another 1.09 million ether deposited for staking, while approximately 621,030 ether is waiting for withdrawal.
Despite the renewed investor confidence in ethereum-linked digital asset investment products, ether’s value dipped 1.42% in the past 24 hours, trading at $1,816 and posting a 13.71% loss over the past seven days.
Bitcoin fell 1% in the last 24 hours to trade at $27,343, marking an 8.54% weekly drop, according to CoinMarketCap data.