Ethereum Trust by Grayscale Loses $327 Million in 24 Hours Amid Varied ETF Activity
The debut of Ethereum spot ETFs did not have the anticipated impact on the market, with Grayscale’s Ethereum Trust ETF facing skepticism from investors. On Wednesday, there was a significant net outflow of $133 million from ETH spot ETFs, particularly the Grayscale Ethereum Trust (ETHE), which lost $327 million following its conversion to a spot ETF. In contrast, the newly established Grayscale Ethereum Mini Trust (ETH) attracted $46 million in inflows, while Fidelity’s FETH drew in $74 million, painting a mixed picture for Ethereum ETFs.
Bitcoin spot ETFs, on the other hand, showed more resilience, with total net inflows for Bitcoin ETFs reaching $44.5 million on July 24. BlackRock’s IBIT ETF led the way with $65.9 million in inflows, while Grayscale’s GBTC experienced an outflow of $26.2 million.
The market volatility for both Ethereum and Bitcoin has been evident, with Ethereum’s price settling at $3,171, down 8.5% over the last 24 hours, and Bitcoin’s price at $64,200, down 3.2% over the same period.
Despite the lackluster response to the Ethereum ETF launch, analysts remain optimistic about ETH’s future, drawing parallels to Bitcoin’s post-ETF performance. Konstantin Shulga, CEO of Finery Markets, highlighted the approval of the ETF as a significant shift in regulatory sentiment, signaling the institutionalization of crypto.
Valentin Fournier, an analyst at BRN, noted the significant outflows from Grayscale’s Ethereum Trust ETF but also highlighted strong trading volume as a positive indicator of ongoing interest. Fournier expressed optimism about Bitcoin’s performance, citing its dominance in the crypto market despite recent price fluctuations.
In conclusion, while the Ethereum ETF launch may not have sparked the expected market excitement, industry experts remain positive about the long-term prospects for both Ethereum and Bitcoin in the evolving crypto landscape.
