Investing.com — Spot ETFs are seeing net outflows in their second week of trading, much like ETFs did when they first launched, said Citigroup strategists.
However, unlike Bitcoin, much of Ethereum’s recent price action since the ETFs launched has been more influenced by equity market movements rather than ETF flows.
Citi analysts pointed out that the recent market correction in risky assets shows once again that crypto currently provides limited diversification benefits. They added, “Crypto fundamentals are holding up overall, as stablecoins have avoided sharp outflows and hash rate has risen despite weaker price action.”
Moreover, Citi argues that Bitcoin hasn’t yet lived up to its reputation as “digital gold,” stating, “Despite both gold and Bitcoin being limited supply, zero-coupon instruments, the original cryptocurrency does not exhibit gold’s ‘store of value’ properties.” They concluded that during the recent…
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