As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and trends. The recent performance of Ethereum has been particularly intriguing, given the launch of ETH ETFs in the US. However, it seems that these events have not had the anticipated positive impact on the token’s price.
As a crypto investor, I’ve been grappling with unease over the past few weeks due to Ethereum‘s price trend, which has been consistently dipping. What intensifies my worry is that, despite the recent introduction of spot ETH ETFs in the U.S., the token doesn’t seem to be finding any respite.
It seems that the lackluster results of Ethereum Exchange-Traded Funds, including Grayscale’s Ethereum Trust (ETHE), might be exacerbating the recent price struggles for Ethereum. Notably, Grayscale has been experiencing a substantial withdrawal of funds from its Ether fund.
Grayscale Ethereum Trust Hits $2.1 Billion In Outflows
After the initial week of trading, there was a substantial withdrawal of funds from U.S. Ethereum ETFs. As per SoSoValue’s data, a sum of $169.35 million was withdrawn from Ethereum exchange-traded funds during the past week.
Although the current outflow from the Ethereum funds on the spot market remains substantial, it’s over 50% less than the outflow experienced during the initial week. In the first week, the Ethereum ETF market experienced a net outflow exceeding $341 million.
The main source of the significant amount of money flowing out is the Grayscale Ethereum Trust, which has recorded withdrawals totaling more than $2.1 billion over the last fortnight. During its debut week, ETHE experienced a net withdrawal exceeding $1.5 billion.
Last Friday, August 2nd, SoSoValue’s data showed that the Grayscale Ethereum Trust experienced an outflow of approximately $61.43 million. As a result, the net asset value of ETHE now stands at roughly $5.99 billion.
In a manner similar to when Bitcoin ETFs first launched, it appears that shareholders of Grayscale’s ETHE are choosing to redeem their shares from the fund, which they have been unable to do for quite some time. Just as was observed with Bitcoin, these large outflows seem to be applying a noticeable downward pressure on Ethereum’s price.
Ethereum Price Overview
Currently, Ethereum’s price is approximately $2,907, showing a decrease of 2.2% over the past day. As reported by CoinGecko, the digital currency has experienced a drop of over 10% within the last week.
Over the past week, the ETH token’s performance highlights its difficulties over the last few weeks. According to CoinGecko, Ethereum’s price has dropped by almost 8% in the last month.
Despite this, Ether continues to hold its spot as the second most valuable cryptocurrency, boasting a market capitalization exceeding $347 billion.
The Ethereum price on the daily timeframe | Source: ETHUSDT chart on TradingView
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2024-08-04 17:12