Ethereum
A good start to the season thwarted by outflows of 341 million dollars
A few months after their approval by the SEC, Officially Spot Ethereum ETFs The new ETFs began trading on July 23. Earlier this week, the nine new ETFs got off to a strong start, attracting more than $106 million in net flows. While the initial response has been enthusiastic, the new ETFs are already facing some hurdles.
Ethereum ETF: A Good Start
The debut of spot Ethereum (ETH) ETFs on Wall Street has generated considerable buzz, with $108 million invested in the funds. However, this amount represents only 16% of the $655 million invested in Bitcoin (BTC) ETFs over a similar period. Excluding outflows from Grayscale’s ETHE and GBTC conversions, Ethereum’s share of ETF inflows jumps to 79%.
However, the new ETFs have struggled to maintain their momentum. After a strong start, the new ETH ETFs have seen three consecutive days of net outflows, totaling $341.8 million. This trend was somewhat expected, as historical patterns for Bitcoin ETFs have shown similar initial outflows.
The Ethereum ETF situation echoes the early days of Bitcoin ETF, where initial outflows were followed by a rebound.
Comparing Ethereum and Bitcoin ETFs
At the same time, outflows from ETH ETFs are significantly larger than those seen with Bitcoin’s GBTC at its launch. This difference is attributed to the fact that ETHE trades at NAV upon conversions, unlike GBTC, which was still at a discount when its spot ETFs launched.
However, despite the initial strong interest, demand for other products, including BlackRock’s ETHA and Fidelity’s FETH, has declined. These ETFs have been unable to offset the significant withdrawals from ETHE.
As a result, data from the first four trading days shows a net outflow of $341.8 million from spot Ethereum ETFs.
ETH Price Analysis
After the launch, the price of Ethereum experienced some volatility, but has since stabilized between $3,200 and $3,300. This price action is similar to that of Bitcoin when its ETFs were launched. Historically, the “ETF effect” has led to a recovery in the price of Bitcoin after an initial period of volatility.
Despite a 3.15% correction over the past week, Ethereum has rebounded strongly, rising 4.84% over the past day. is currently trading at $3,366with a 24-hour high of $3,384.53 and trading volume of $11.076 billion.
If the positive market sentiment continues, Ethereum could build on this momentum, break through its resistance level at $3,700 and potentially reach $4,000.