Summary
TLDR: Geopolitical risks in the Middle East are causing investors to pull $118 million from Ethereum-based funds, while Bitcoin funds see $3.5 billion in inflows. Hong Kong approved spot Ethereum and Bitcoin ETFs, but it’s unlikely to reverse market trends. Approval odds for spot Ethereum ETFs in the U.S. have plummeted to 18%, with little interaction between asset managers and the SEC. Outflows from Ethereum funds continue as investors turn to altcoins, despite positive network upgrades.
Key Points
1. Swirling geopolitical risks in the Middle East are impacting Ethereum-based funds, leading to a streak of outflows over the past five weeks.
2. Investors have withdrawn $118 million from digital asset investment products tracking Ethereum, while Bitcoin-based funds have seen over $3.5 billion in inflows.
3. Concerns about drone attacks in Israel from Iran, regulatory inquiries, and dimming hopes for a spot Ethereum ETF in the U.S. have contributed to Ethereum’s recent price decline and outflows from funds.