Ethereum ETF Outflows Surge to $2 Billion Amid Sub-$3,000 Price Struggle
The recent performance of Ethereum has been a cause for concern among investors as the token continues to trend downwards, despite the introduction of spot ETH ETFs in the United States. The underwhelming performance of these ETFs may be exacerbating Ethereum’s struggles, with Grayscale’s Ether fund experiencing significant capital outflows.
In the first full week of trading, the US spot Ethereum ETF market witnessed a substantial outflow of funds, totaling $169.35 million. Although this outflow is noteworthy, it is more than 50% lower than the initial week, which saw a net outflow exceeding $341 million. The primary contributor to this capital outflow is the Grayscale Ethereum Trust, which has seen withdrawals surpassing $2.1 billion in the last two weeks, including a net outflow of over $1.5 billion during its launch week.
On August 2, the Grayscale Ethereum Trust experienced an outflow of $61.43 million, bringing its total net asset value to just under $6 billion. Similar to the launch of spot Bitcoin ETFs, holders of Grayscale’s ETHE are redeeming their shares, potentially exerting downward pressure on Ethereum’s price.
As of the latest data, the Ethereum price stands around $2,907, reflecting a 2.2% decline in the past 24 hours and over a 10% decrease in the last seven days. Over the past month, Ethereum’s price has fallen by nearly 8%. Despite these challenges, Ether remains the second-largest cryptocurrency by market capitalization, surpassing $347 billion.
The ongoing outflows from Grayscale’s ETHE and the broader market dynamics surrounding Ethereum ETFs are influencing the token’s price performance. Investors are closely monitoring these developments as they navigate the evolving landscape of digital assets.
