Ethereum

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Ethereum has hit a new low, becoming the worst-performing digital asset investment product of the year. According to CoinShares, Ethereum experienced its largest outflow since August 2022, with $61 million exiting last week. 
Digital asset investment products have faced a rough patch, with last week marking the third consecutive week of outflows. A total of $30 million left the market, reflecting a persistent negative trend. 
<figure id="attachment_549287" aria-describedby="caption-attachment-549287" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" class="wp-image-549287 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-11.58.30.jpg" alt="Ethereum becomes the worst-performing crypto product this year" width="1371" height="912" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-11.58.30.jpg 1371w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-11.58.30-300x200.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-11.58.30-1200x798.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-11.58.30-768x511.jpg 768w" sizes="(max-width: 1371px) 100vw, 1371px">
 <figcaption id="caption-attachment-549287" class="wp-caption-text">
 Source: <a href="https://blog.coinshares.com/volume-189-digital-asset-fund-flows-weekly-report-5265d50f2769" rel="nofollow noopener" target="_blank">CoinShares</a>
 </figcaption>
</figure> 
Despite some providers experiencing minor inflows, the market was heavily impacted by Grayscale, which saw outflows of $153 million. 
Trading volumes did rise by 43% week-on-week to $6.2 billion, but this figure is still below the $14.2 billion weekly average for the year. 
<h2 id="regional-breakdown-of-inflows-and-outflows">Regional breakdown of inflows and outflows</h2> 
The regional analysis shows a mixed picture. The US led with $43 million in inflows, followed by Brazil and Australia with $7.6 million and $3 million respectively. 
However, several regions saw massive outflows. Germany faced $29 million in outflows, Hong Kong $23 million, Canada $14 million, and Switzerland $13 million. 
<figure id="attachment_549288" aria-describedby="caption-attachment-549288" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" class="wp-image-549288 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-12.06.34.jpg" alt="" width="1357" height="773" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-12.06.34.jpg 1357w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-12.06.34-300x171.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-12.06.34-1200x684.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/Screenshot-2024-07-01-at-12.06.34-768x437.jpg 768w" sizes="(max-width: 1357px) 100vw, 1357px">
 <figcaption id="caption-attachment-549288" class="wp-caption-text">
 Source: CoinShares
 </figcaption>
</figure> 
On the flip side, some digital assets saw positive movements. Multi-asset and Bitcoin ETPs led the inflows with $18 million and $10 million, respectively. 
Interestingly, short-bitcoin products saw outflows totaling $4.2 million last week, indicating a possible shift in sentiment. Altcoins like Solana and Litecoin also witnessed inflows, with Solana receiving $1.6 million and Litecoin $1.4 million. 
QCP Capital shared some interesting <a href="https://t.me/QCPbroadcast/1256" rel="nofollow" target="_blank">insights</a> on the current market dynamics. They noted that Bitcoin started the second half of the year with a strong surge from the $60k region to $63.7k, following a false break below the $60k support level. 
This movement was supported by recovering BTC spot ETF inflows, which saw $73 million of net inflows last Friday, the highest daily inflow in two weeks. 
<figure id="attachment_549293" aria-describedby="caption-attachment-549293" style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" class="wp-image-549293 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-01_12-13-27.jpg" alt="Ethereum becomes the worst-performing crypto product this year" width="1920" height="1368" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-01_12-13-27.jpg 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-01_12-13-27-300x214.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-01_12-13-27-1200x855.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-01_12-13-27-768x547.jpg 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/07/BTCUSDT_2024-07-01_12-13-27-1536x1094.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px">
 <figcaption id="caption-attachment-549293" class="wp-caption-text">
 Source: TradingView
 </figcaption>
</figure> 
According to QCP, looking at seasonality, Bitcoin has a median return of 9.6% in July and tends to rebound strongly, especially after a negative June. Last month, Bitcoin experienced a negative return of -9.85%, so signs are pointing towards a bullish July. 
Their options desk also noted flows positioning for an upside move last Friday into the month-end, potentially in anticipation of the Ethereum spot ETF launch. This optimism suggests that investors are getting ready for a potentially profitable month. 
For traders looking to capitalize on these trends, QCP Capital suggested a BTC accumulator with an expiry of 20 September 2024. The trade has a strike price of $59,000 and a barrier of $71,000, with weekly observation frequency. 
The spot reference for BTC/USD is $63,000. This trade idea banks on the bullish momentum and seasonality patterns that Bitcoin often sees in July. 
Jai Hamid

Ethereum becomes the worst-performing crypto product this year

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