There’s ‘Good News’ for Ethereum ETFs Amid Disappointing Outflows, Top Analyst Says

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As a seasoned researcher with a focus on ETFs and cryptocurrencies, I have closely monitored the performance of Ethereum ETFs since their inception. Eric Balchunas, senior ETF analyst at Bloomberg, is someone whose insights I hold in high regard due to his extensive experience in the field.

Eric Balchunas, a senior ETF analyst at Bloomberg, brings positive news to investors displeased with the perceived lackluster returns from Ethereum-linked ETFs.

According to Balchunas, these products are seeing “very healthy” inflows and trading volumes. 

Tough days ahead 

Although Balchunas remains hopeful, he has issued a cautionary note that the coming days may present challenges for these specific products as a result of redemptions from Grayscale’s ETH Trust (ETHE).

Thursdays saw a total withdrawal of approximately $152.4 million from these eagerly awaited products. On its debut day, Grayscale’s ETHE experienced a significant loss amounting to around $346 million.

So far, Ethereum ETFs have had only one day of positive inflows, which was their debut day. 

Will this be over soon? 

Despite Balchunas’ belief that the unlocking frequency of Grayscale Bitcoin Trust (GBTC) may be more sustained compared to Bitwise Bitcoin Fund (Balchunas), he remains convinced that the intensity of the former’s unlocking process will decrease sooner.

According to U.Today’s report, the Ethereum price has taken a hit due to disappointing post-launch outflows and the latest stock market downturn.

Some market analysts remain optimistic that Ethereum’s downturn will end soon. Digital specialist Miles Deutscher views the Ethereum price drop as a chance, looking back at Bitcoin’s significant correction following its ETF debut and subsequent all-time high in March.

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2024-07-26 18:44