Ethereum Surges as Grayscale’s Ether ETF Records Initial Daily Influx
Crypto markets saw a positive trend on Tuesday, with the Grayscale Ethereum Trust (ETHE) marking its first day without outflows since its inception. Ethereum (ETH) surged by 1.7% to reach $2,635, while Bitcoin (BTC) recorded a modest 0.11% gain, reaching $58,882. Polkadot (DOT) experienced a 2% decline, and Solana (SOL) saw a 0.12% increase.
Among the top 100 cryptocurrencies by market capitalization in the past 24 hours, Sats (1000SATS) emerged as the best performer with a 15% gain, followed by Ordi (ORDI) at 9% and Eos (EOS) at 2%. Conversely, Lido DAO (LDO) faced a 5% downturn, while Dogwifhat (WIF) dropped by 4.41%.
Spot Ether flows turned bullish recently, with Ether exchange-traded funds (ETFs) reporting $4.93 million in net inflows on Monday. This marked the fifth day of positive inflows since the launch of ETH ETFs on July 23. Additionally, Spot Bitcoin ETFs saw inflows of $27.8 million.
Following 14 consecutive days of outflows after its launch, ETHE finally experienced a day without outflows. The significant outflows of $2.29 billion from ETHE have impacted the Ether ETF sector in its initial two weeks of operation. However, recent net inflows in the sector suggest a potential shift towards positive flows in the future.
Despite the recent rebound in most cryptocurrencies after a significant market crash, analysts remain cautious as Bitcoin and Ethereum struggle to surpass key resistance levels of $60,000 and $2,700, respectively. QCP Capital analysts highlighted the market’s cautious stance, noting the BTC put skew till September and previous recovery patterns after sharp drawdowns earlier in the year.
Arthur Hayes, the co-founder of Bitmex and CIO of Maelstrom Fund, expressed optimism in a blog post, suggesting that a bullish turn in the broader digital asset markets hinges on Bitcoin and Ether reclaiming crucial psychological levels. Hayes emphasized the potential return of an “Alt szn” (season) following successful breaches of $70,000 for Bitcoin and $4,000 for Ether.
In other market news, U.S. stock futures showed a positive outlook early on Tuesday as investors awaited key inflation data. S&P 500 futures and Nasdaq-100 futures rose by 0.3% and 0.5%, respectively, while Dow Jones Industrial Average futures remained steady. The producer price index came in lower than expected, indicating a slowdown in inflation, with investors eagerly anticipating the consumer price index (CPI) data to guide market decisions following recent volatility.
