As an analyst with over two decades of experience in the financial markets and a keen interest in digital assets, I find myself intrigued by the recent developments in the US spot Ethereum exchange-traded funds (ETFs). The market’s volatile nature is nothing new to me, but it’s fascinating to witness the dance between inflows and outflows in these ETFs.
The initial days of the week were encouraging for US Ethereum exchange-traded funds (ETFs), but that optimism quickly waned. On August 15, these ETFs experienced substantial withdrawals, with approximately 1,736 ETH, equivalent to $39.21 million, being withdrawn from the market. This event ended a three-day streak of inflows, as the overall cryptocurrency market has been grappling with recovery efforts following a significant drop earlier this month.
On Monday, there was a net outflow of approximately $4.93 million from Ether ETFs. This was followed by outflows of around $24.3 million on Tuesday and about $10.7 million on Wednesday. In total, these outflows amounted to over $40 million from Ether ETFs during those days.
Based on figures provided by SoSoValue, it’s worth noting that the Grayscale Ethereum Trust (ETHE) experienced a significant outflow of approximately $42.52 million on Thursday. Interestingly, this was the only Ether ETF to register a decrease on that particular day.
Various Ethereum-focused ETFs demonstrated a range of performance outcomes. Fidelity’s FETH recorded a moderate influx of approximately $2.54 million, while BlackRock’s ETHA attracted around $770,350. On the other hand, no new investments were reported for the other Ethereum ETFs, such as the Grayscale Ethereum Mini Trust (ETH).
On Thursdays, the combined trade value for the nine Ethereum Exchange-Traded Funds amounted to approximately $240.58 million, marking a significant jump from the previous day’s figure of $155.91 million and surpassing the trade volume recorded on Tuesday ($190.76 million).
Long-Term Scenery
As an analyst, I’ve been closely monitoring the development of the spot Ether ETFs approved by the US Securities and Exchange Commission (SEC) on July 22. These products started trading the day after approval, but they’ve had a challenging beginning. Since their launch, these ETFs have experienced a total net outflow of $405 million. Intriguingly, outflows were observed on ten out of the eighteen trading days thus far.
Regarding these funds, although they had a rocky beginning, industry specialists continue to be positive about their future potential. According to a recent prediction by Steno Research, spot Ether Exchange-Traded Funds (ETFs) might see inflows of up to $20 billion over the next year, fueled by increasing institutional interest.
Currently, Ethereum (ETH) is being exchanged at approximately $2,622, marking a drop of more than 2.5% over the last seven days. Its price on the crypto market seems to be holding steady, showing minimal fluctuations in the daily graph.
In a recent development, on August 14th, Vitalik Buterin – a key figure in Ethereum’s creation – decided to liquidate some collectible coins with animal themes that he had acquired during the past year. The funds generated, amounting to 200 ETH or approximately $532,000, were then donated as a charitable contribution.
Over the last day, Bitcoin dipped slightly by 0.37%, trading at approximately $58,161 at this moment. Contrastingly, U.S. spot Bitcoin ETFs registered modest inflows of $11.11 million on Thursday, a reversal from the $81.36 million outflows observed the previous day. Interestingly, all other ETFs reported inflows except for Grayscale’s GBTC, which experienced outflows totaling $25 million.
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2024-08-16 10:55