The figure pushed Ethereum's cumulative year-to-date flows to a net negative of $273 million.
Ethereum News
Ethereum investment products recorded $222 million in net outflows last week, the largest weekly loss among all digital asset funds tracked by CoinShares. The figure pushed Ethereum's cumulative year-to-date flows to a net negative of $273 million. That is the worst performance of any crypto product in CoinShares' coverage universe.
Weekly outflows across all crypto funds totaled $414 million. The reading marked the first net negative week for the sector in five weeks, according to CoinShares' weekly digital asset fund flows report.
James Butterfill, head of research at CoinShares, linked the Ethereum losses directly to concerns about the CLARITY Act, a U.S. crypto market structure bill currently advancing through Congress. A revised draft of the bill has raised questions about the regulatory treatment of staked Ethereum products and yield-bearing stablecoin programs.
U.S. investors drove the majority of the weekly losses, accounting for $445 million in outflows. Switzerland contributed a further $4 million in outflows over the same period, Butterfill noted.
Circle, the company behind USDC, saw its stock fall by roughly 25% during the week. Investors attributed the drop to speculation that the revised CLARITY Act draft would restrict yield-bearing stablecoin products. Circle does not pay yield on USDC itself, but Coinbase and Kraken both pay users rewards for holding USDC balances on their platforms.
Federal Reserve rate expectations shifted sharply over the same period. One month ago, roughly 25% of traders expected a rate cut at the June FOMC meeting, according to CME FedWatch data. That share has fallen to near zero. Traders are now 97.4% certain the Fed will hold rates steady at its next meeting, while 2.6% are pricing in a 25-basis-point increase. The FOMC's next rate decision is scheduled for April 28.
Geopolitical tensions added to the pressure on investor sentiment. The combination of regulatory uncertainty and fading rate-cut expectations accelerated the weekly sell-off across crypto funds.
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