Ethereum Price Surges to Weekly Peak as Grayscale’s ETHE Records Withdrawal-Free Day

Ethereum experienced a brief surge above $2,700 on Tuesday morning, marking a weekly peak before retracing slightly. Currently, ETH is valued at $2,646, showing a 1.5% decrease from the previous day, as per CoinGecko data.

This price movement followed a day where U.S. spot Ethereum ETFs showed modest growth, attracting $5 million in inflows, as reported by Farside Investors. This positive trend came after three consecutive days of outflows, during which investors withdrew $42.4 million from ETH funds.

Of particular interest was the Grayscale Ethereum Trust (ETHE), which saw no outflows for the first time. The fund, which transitioned to a spot ETH fund in July with over $9 billion in assets under management, has since seen a $2.2 billion decrease in AUM.

It’s important to note that tracking crypto fund performance in USD involves accounting for price fluctuations. When these funds debuted three weeks ago, ETH was trading around $3,500. However, since then, the price of Ethereum has dropped by more than 23%.

Institutional interest in Ethereum extends beyond the U.S., with Spectrum Markets highlighting the European Investment Bank’s issuance of its first digital bond in 2021 as a significant development. The bank’s move underscores growing institutional consideration of Ethereum.

Michael Hall, Head of Distribution at Spectrum Markets, emphasized that Ethereum’s technological advancements, such as ‘staking’ for dividend payments, have made it a preferred choice for many investors over Bitcoin. Hall noted an uptick in retail investor interest, with the firm’s SERIX value for Ethereum rising from 110 to 113 in July, while Bitcoin’s measure remained steady at 108.

BRN analyst Valentin Fournier highlighted a positive turnaround for Bitcoin ETFs, attracting $28 million in investments on Monday. Fournier suggested that Bitcoin may experience a significant retracement before the end of the month, despite remaining bullish in both the short and long term. He recommended maintaining a balanced exposure between BTC and ETH while increasing positions, advising caution as Bitcoin could revisit lower levels between late August and late September.