Ethereum Funds Decline Despite Bitcoin Merger

Significant flows of value among the largest cryptocurrencies.

Digital asset investment products saw capital inflows of around $ 7 million last week. This is another week of low, but still growing activity. The mix of rising and falling cash flows in terms of supplier and asset suggests a continued disengagement from global investors.

Cryptocurrency sector with rising flows last week

Taking into account the division into individual parts of the world, the positive net flows were concentrated in the USA and also in Germany, reaching USD 14 million and USD 11 million, respectively. In contrast, Sweden and Canada recorded significant declines of $ 16 million and $ 4.2 million, respectively.

Bitcoin received inflows of $ 17 million. This is the first significant uptrend after a five-week streak of downturns totaling $ 93 million. Meanwhile, Bitcoin short instruments also recorded slight gains of $ 2.6 million, and their total funds under management are approaching their all-time high of $ 169 million.

Multi-asset investment products (based on several cryptocurrencies) remain a safe haven in this bearish period, as this year they recorded only a few weeks of capital outflows. The inflows since the start of the year now stand at $ 224 million and are almost equal to those of Bitcoin, suggesting investors are currently looking for security.

Despite the success of The Merge, funds continue to flow out of Ethereum

The capital flows after the Ethereum network update show continued caution among investors with the fourth consecutive week of ETH outflows with a total value of USD 15 million. This series of declining net flows, while modest, now stands at $ 80 million.

- Our research emphasizes that The Merge started correctly with high activity among validators - comments CoinShares.

The price of ETH has dropped significantly since The Merge - which has been described as an event that could lure more big investors into the Ethereum network ecosystem. About five days before the Ehereum update on September 15, ETH approached $ 1,800. Today it moves from hand to hand at an average price of $ 1,300 per coin.

"Large liquidations of leveraged long positions in derivatives markets have deepened the fall in spot prices," pointed out in the latest report by the Kaiko group, which deals with cryptocurrency data. The company's team tried to explain why ETH fell so much after The Merge.