Spot Ethereum ETF Weekly Inflow Hits $105M, ETH To 3000?

by

As a seasoned crypto investor with a decade of experience under my belt, I’ve seen my fair share of market highs and lows. This past week, the spot Ethereum ETFs have been quite the rollercoaster ride. The net inflow reaching $105 million by the end of the week is certainly impressive, but the mixed sentiment among investors is a reminder that this space can be as unpredictable as a game of cat and mouse in a haunted house.

Over the past seven days, I’ve noticed a surge in activity surrounding Ethereum ETFs. These exchange-traded funds have seen both inflows and outflows, creating a somewhat ambiguous atmosphere within the market. By week’s end, there was a cumulative net inflow of approximately $105 million into these Ethereum ETFs, driven by a robust beginning. This has ignited conversations about Ethereum (ETH) potentially reaching the $3,000 mark.

A Look At Spot Ethereum ETF Weekly Flows

As a seasoned cryptocurrency investor with over a decade of experience under my belt, I must say that the recent developments in the Ethereum Exchange Traded Fund (ETF) market have piqued my interest. On Monday, August 5th, the ETFs related to Ethereum started the week on an optimistic note with net inflows amounting to $48.8 million.

On the other hand, there were substantial withdrawals totaling $46.8 million from Grayscale’s Ethereum Trust (ETHE), whereas its smaller Ethereum ETF attracted inflows of only $7.6 million during the week. This disparity in investment trends set a somewhat conflicting tone for the beginning of the week, signifying differing attitudes among investors.

Despite this, the positive trend persisted on Tuesday, August 6, with Ether ETFs experiencing inflows totaling $98.4 million. Once again, BlackRock led the way, attracting an impressive $109.9 million in fresh investments. Additionally, Fidelity also saw significant success, garnering $22.5 million.

Alternatively, Grayscale’s ETHE experienced significant outflows totaling $39.7 million. Despite the positive impact of large inflows observed on Tuesday, the consistent outflow from ETHE indicates a note of caution in the overall market sentiment.

The Outflow Trend Emerges

During the middle of the week on August 7th, there was a change in the prevailing pattern. Specifically, for spot Ethereum ETFs, the net outflow reached $23.7 million. Grayscale’s ETHE experienced an outflow of $31.9 million, while Fidelity’s ETH ETF saw a modest inflow of $4.7 million. This change indicates a shift in the week’s trend, showcasing increased volatility.

On Thursday, August 8th, there were still withdrawals from the market, but at a slower rate compared to previous days. The cumulative net withdrawal for Ether ETFs amounted to approximately $2.9 million. Notably, Grayscale’s ETHE was responsible for $19.8 million of these outflows, while its smaller Ethereum ETF saw an inflow of $5 million in fresh investments.

BlackRock’s Ethereum ETF experienced an inflow of approximately $11.7 million, which somewhat countered the general pattern of withdrawals. Yet, experts at QCP Capital anticipate more withdrawals from Grayscale’s Ethereum trust in the upcoming week.

The week ended on Friday, August 9, with spot Ethereum ETFs recording a net outflow of $15.8 million. Despite this, the overall weekly total remained positive at $104.8 million. BlackRock’s Ethereum ETF once again led the inflows with $19.6 million.

While Fidelity’s FETH experienced a relatively small inflow of approximately $3.9 million, Grayscale’s ETHE witnessed significant outflows totaling about $41.7 million. To put it another way, the net outflow for ETHE now stands at an impressive but concerning $2.29 billion over time.

Will ETH Surge To $3000?

Regardless of the varied results seen in Ethereum-based ETFs, the value of ETH itself has held steady, fluctuating within the range of $2,300 and $2,650 throughout the past week. The current market activity hints at a possible change in investor attitude.

Based on QCP Capital’s examination, there seems to be a significant shift in the liquidity characteristics of Bitcoin (BTC) and Ethereum (ETH). Notably, Bitcoin is progressively being perceived as a digital equivalent of gold, thereby attracting institutional investors. Conversely, Ethereum appears to be experiencing a decline in its allure as a speculative asset.

On August 5th, it was clear that there was a change as ETH experienced a 22% decrease in worth, while BTC only fell by 16%. Moreover, since the debut of spot Ethereum ETFs, the difference in predicted volatility between BTC and ETH has broadened from 5% to 20%, indicating that investors are modifying their tactics. This observation aligns with the idea that they’re readjusting their strategies.

Currently, Ethereum’s price is holding steady near $2,600, but optimistic investors might aim for a jump up to $3,000 based on recent reports from Coingape. Yet, technical signals like the approaching death cross between the 50-day and 200-day moving averages (EMAs) could signal an increase in selling pressure. This might lead to a possible drop in Ethereum’s price down to $1,830.

Read More

2024-08-11 11:38