Ethereum
Grayscale Ethereum Trust Loses $327 Million in One Day as ETFs See Mixed Flows
The highly anticipated Ethereum Spot ETFs Launched failed to ignite the market as expected, with Grayscale’s Ethereum Trust ETF bearing the brunt of investor skepticism.
On Wednesday, ETH spot ETFs saw a staggering net outflow of $133 million, with the Grayscale Ethereum Trust (ETHE), which converted to a spot ETF on Tuesday, losing $327 million, according to data from SoSo Value.
While the company’s newly created Grayscale Ethereum Mini Trust (ETH) managed to attract $46 million in inflows, and Fidelity’s FETH attracted $74 million, the overall picture for Ethereum ETFs remains unclear.
In contrast, spot Bitcoin ETFs have demonstrated greater resilience.
On July 24, Bitcoin ETF net inflows hit $44.5 million, with BlackRock’s IBIT ETF leading the charge with $65.9 million in inflows. Grayscale’s GBTC, however, saw an outflow of $26.2 million.
These ETF movements are part of a context of Market Volatility for Ethereum and Bitcoin.
At present, the Ethereum Price The stock was trading at $3,171, down 8.5% in the past 24 hours, after hitting a low of $3,156.69 earlier in the day. Its 24-hour trading volume was $22.4 billion.
Things aren’t looking much better for Bitcoin. Bitcoin Price is currently sitting at $64,200, down 3.2% over the past 24 hours, after hitting a low of $63,565.53 earlier in the day.
QCP Capital, a Singapore-based crypto trading firm, noted the market’s disappointing response to the Ethereum ETF launch, writing in a yesterday’s note that the highly anticipated ETH spot ETF has started trading, “but the expected market fireworks have failed to materialize.”
However, the firm’s analysts wrote that they maintain a positive outlook for ETH, drawing parallels with Bitcoin’s post-ETF trajectory.
In a note to DecryptKonstantin Shulga, CEO of Finery Markets, an institutional infrastructure provider, highlighted the broader implications by saying the approval marks a significant shift in regulatory sentiment, signaling the irreversible institutionalization of crypto.
“We have seen a significant surge in BTC following the launch of BTC ETFs. Expectations for ETH, the second largest digital asset, are high, especially in the current bull market. Research indicates a higher sensitivity of Ethereum to global ETP flows compared to Bitcoin. However, we must remain patient and account for volatility and potentially inflated expectations,” he said.
BRN analyst Valentin Fournier provided some context to Grayscale’s outflows, saying: “Grayscale is seeing huge outflows from its Ethereum Trust ETF, with 8% of its $10 billion sold over two trading days.”
Despite this, Fournier highlighted the strong trading volume as a positive sign of continued interest.
But Fournier wrote that he remains bullish on Bitcoin. “Since its recent surge to $68,500, Bitcoin’s price has fallen by 6%,” he wrote. “However, its dominance in the cryptocurrency market has increased (+2%). This means that despite strong selling pressure and successive losses over the last 4 days, it is performing much better than other cryptocurrencies.”
Edited by Stacy Elliott.