Spot Ethereum ETFs Mirror Negative Trend as BTC Following Inception
Analysts at Woo X research platform have noted that spot Ethereum Exchange-Traded Funds (ETFs) are currently experiencing a downturn similar to that of Bitcoin. This downward trajectory reflects the overall bearish sentiment prevailing in the market. Since the launch of the ETH spot ETFs on July 23, the cryptocurrency has witnessed an 11% decline in price, plummeting from $3,500 to around $3,100 within a span of just three days.
Adding to the challenging market conditions, Woo X analysts suggest that the ETH spot ETFs are facing a hurdle reminiscent of Bitcoin’s past struggles. They attribute this predicament to the significant selling pressure exerted by Grayscale, the largest asset management company.
- ETH spot ETFs experience a similar downturn to Bitcoin ETFs
- 11% price decrease in Ethereum within three days of ETF launch
- Challenges linked to selling pressure from Grayscale highlighted
Grayscale’s Influence on Spot Ethereum ETFs and BTC
In the wake of the launch of Bitcoin spot ETFs, a similar scenario unfolded where BTC prices plunged by 20%, dropping from approximately $48,000 to $38,000 in just over two weeks. This sharp decline was attributed to Grayscale’s BTC ETF, GBTC, exerting selling pressure on the market.
However, as the selling pressure from Grayscale’s GBTC diminished, Bitcoin’s price rebounded, eventually reaching a historic high of $73,000. Woo X posits that if Ethereum encounters a parallel situation, ETH prices could potentially touch the $2,850 mark. The price movement will largely depend on the interplay between Grayscale’s selling pressure and the inflow of capital into spot ETH ETFs.
- Bitcoin’s price dropped due to Grayscale’s selling pressure after ETF launch
- Grayscale’s selling pressure reduced, leading to BTC price surge
- Ethereum’s price could hit $2,850 if faced with similar circumstances
ETH Spot ETFs Witness Negative Inflows
Investor interest in spot Ethereum ETFs has waned significantly, evident in the negative outflows recorded by these funds post Tuesday’s trading session. Millions of dollars were reported to have been withdrawn from these products.
According to data from Farside Investors, a London-based investment management company, spot Ethereum ETFs experienced an outflow of $47 million overall. While Fidelity ETH ETF (FETH) managed to attract daily inflows of about $4.9 million, other funds such as Blackrock’s Ethereum ETF (ETHA), Bitwise ETH ETF (ETHW), and several others closed with zero inflows.
Grayscale ETH ETF (ETHE) witnessed outflows amounting to approximately $52.3 million, underscoring investor caution amid ETH price movements and market volatility.
- Negative outflows seen in spot Ethereum ETFs after recent trading
- Fidelity ETH ETF attracted daily inflows while others saw zero inflows
- Investors withdrawing due to price movements and market uncertainties
Hot Take: The Future of Spot Ethereum ETFs Amid Market Challenges
As the crypto market navigates through turbulent times, spot Ethereum ETFs find themselves grappling with challenges similar to those faced by Bitcoin ETFs upon their inception. It remains to be seen how these ETFs will weather the storm and whether they can sustain investor interest amid market uncertainties. The interplay between selling pressure from Grayscale and capital inflows will undoubtedly play a crucial role in determining the future trajectory of spot Ethereum ETFs.
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