The prolonged delay in approving spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) has led to a significant decline in investor sentiment, resulting in Ethereum ETFs experiencing their largest outflows in two years. According to a recent report by CoinShares, this trend marks a third consecutive week of negative flows, totaling $30 million in outflows.

The negative sentiment surrounding Ethereum has resulted in outflows of $61 million, the highest since August 2022, with a total of $119 million in outflows over the past two weeks. This makes Ethereum the worst-performing asset year-to-date, with a negative net flow of $25 million. In contrast, Bitcoin has benefited from this shift in sentiment, with inflows totaling $10 million last week.

The delay in approving spot Ethereum ETFs has led to a significant decline in investor confidence, resulting in a substantial decrease in trading volume. However, despite this decline, the trading volume of these products rose by 43% week-on-week to $6.2 billion, still significantly lower than the weekly average of $14.2 billion.

The SEC's delay in approving spot Ethereum ETFs has led to a significant increase in outflows from Ethereum-related investment products. However, Bitcoin has benefited from this trend, with inflows totaling $10 million last week. The positive sentiment surrounding Bitcoin has also led to minor inflows in other large-cap alternative digital assets like Solana and Litecoin.

Despite the negative sentiment surrounding Ethereum, blockchain equities have suffered outflows of $545 million this year, representing 19% of AuM. The delay in approving spot Ethereum ETFs has led to a significant decline in investor confidence, resulting in a substantial decrease in trading volume. However, market observers remain optimistic about the potential approval of these financial instruments, which could lead to a significant increase in trading volume and investor sentiment.