Ethereum
Ethereum ETFs saw $340 million in negative outflows in their first week, weighing on ETH price
Point ether (ETH) Exchange-traded funds saw negative net flows in their first week as massive outflows from the Grayscale Ethereum Trust (ETHE) outpaced interest in competing products.
Bitcoin similar (BTC) The funds, which debuted in January, brought in $1 billion in net inflows in the first four days, although they too suffered significant outflows from an existing Grayscale fund.
Overall, spot ETH ETFs suffered $340 million in net outflows, with more than $1.5 billion leaving the Grayscale Trust, according to Farside Investors.
The price action appears to reflect the ETF’s lackluster performance, with ether down 5% last week while bitcoin added 2%.
Grayscale’s ETHE aside, other newly listed ether ETF products attracted $1.15 billion in inflows last week, led by offerings from BlackRock, Bitwise and Fidelity.
Although the current pace of ETHE outflows means the fund would run out of assets within the next four weeks, analysts expect them to start tapering off as early as this week.
Quinn Thompson, founder of digital asset hedge fund Lekker Capital, sharp It was pointed out that ETHE had already lost the same amount of assets as GBTC when bitcoin found a local bottom in late January during its post-ETF selloff. BTC fell 15% to below $39,000 in two weeks and then advanced to new all-time highs.
Mads Eberhardt, senior crypto analyst at Steno Research, note that GBTC outflows declined significantly after the eleventh trading session and predicted that ETHE could follow the same path.
“Net outflows from the Ethereum ETF have not yet tapered off, but it is likely to happen this week,” Eberhard said. said in a post published Monday X. “When that happens, it only escalates from there,” he said.