Ethereum investment products are experiencing their worst outflows in nearly a year, according to a recent CoinShares report. Over $120 million has been withdrawn from Ether-tracked funds in the past two weeks, marking the highest exodus since August 2022. This trend has made Ether the worst-performing cryptocurrency asset year-to-date in terms of net investment flows.

The outflows come as the much-anticipated launch of Ether ETFs (Exchange-Traded Funds) in the US draws closer. The Securities and Exchange Commission (SEC) finally greenlit applications for these ETFs last month, potentially offering a more traditional and regulated way for investors to participate in the Ethereum market.

Analysts suggest this investor wariness might be a strategic move in anticipation of the ETFs. With a new and potentially more accessible investment vehicle on the horizon, some investors may be pulling out of existing funds to re-enter the market through ETFs once they launch.

"We're seeing a cautious approach from investors," said, a crypto market expert. "The upcoming Ether ETFs could significantly change the landscape for Ethereum investment. It will be interesting to see if this trend continues or if there's a resurgence of interest in Ether funds once the ETFs become available."

Meanwhile, other cryptocurrency assets are telling a different story. Bitcoin and multi-asset ETPs have seen inflows of $18 million and $10 million respectively during the same period. This suggests a shift in investor sentiment, with some potentially taking profits from Ether or seeking diversification within the crypto market.

Only time will tell how the launch of Ether ETFs will impact the cryptocurrency market. However, the recent outflows paint a picture of cautious optimism among investors, eager to see how this new investment avenue unfolds.