Ethereum Surges 10% Amid Slowing Grayscale ETF Outflows

Ethereum surged by double digits on Friday morning, surpassing $2,700 and outperforming Bitcoin and Solana as the cryptocurrency market continued its recovery from the crash earlier in the week.

Currently trading around $2,664, Ethereum’s price has risen by 9.6% in a day, although it remains down by over 15% for the week, according to CoinGecko data.

In the past day, trading volume has increased by 5%, and open interest has surged by 15%, as indicated by Coinglass data. This uptrend suggests growing investor confidence in Ethereum’s trajectory, reflected in the broader crypto market’s sentiment, with the Crypto Fear & Greed Index returning to “neutral” levels.

Notably, large-scale holders like Jump Crypto and Paradigm have slowed down their asset liquidation activities. Jump Trading, for instance, has reduced its Ethereum holdings to just above $15 million, up by $1 million in the past day.

Financial analysts recently observed Ethereum trading poorly in the current market cycle, with the ETH-to-BTC conversion ratio hovering around 0.043, slightly above its yearly low of 0.041.

Despite this, some experts believe Ethereum requires more time to shine, especially with the recent launch of U.S. spot Ethereum ETFs. These ETFs are expected to provide institutions with a regulated means to access Ethereum exposure, potentially boosting the cryptocurrency’s prospects. However, FarsideUK CIO Jonathan Bier cautioned that much of the momentum will depend on investors shifting their existing Ethereum Trust holdings into ETFs.

On Thursday, Ethereum ETFs experienced net outflows of just $2.9 million, with Grayscale’s Ethereum Trust (ETHE) seeing reduced outflows of $19.8 million, while Fidelity’s FETH witnessed its first day of outflows since its launch.

The article was edited by Stacy Elliott.