Daily outflow of nearly $200 million for Ethereum spot ETFs marks second-highest recorded
The recent trend in the Ethereum market has seen a significant shift, with Ethereum spot ETFs experiencing the second-largest daily outflow of almost $200 million. While last week saw record inflows, this sudden reversal has raised eyebrows in the investment community. The majority of the outflow, around 84%, came from BlackRock’s iShares Ethereum Trust ETF and Fidelity’s Ethereum Fund.
Despite these outflows, the total amount of Ethereum tokens held in ETFs still stands at a significant 6.5 million, totaling approximately $28 billion. These numbers represent almost 5.4% of the total supply of Ethereum, the second-largest cryptocurrency by market capitalization. In comparison, treasury entities currently hold around 4.1 million Ethereum tokens valued at $17.6 billion.
In light of these developments, SharpLink Gaming, a prominent treasury firm chaired by Ethereum co-founder Joseph Lubin, announced the purchase of an additional 143,593 tokens last week. This acquisition, with an average entry price of $4,648, demonstrates a high level of confidence in Ethereum’s long-term potential. The company now holds a substantial 740,760 Ethereum tokens valued at approximately $3.2 billion. Additionally, SharpLink Gaming was able to raise $536.5 million through various financial strategies, as revealed in a recent press release.
Parallel to the ETF outflows, Ethereum’s validator exit queue has hit a new record high of 911,718 tokens, equivalent to about $3.9 billion. The waiting time for these validators looking to exit currently stands at 15 days and 20 hours. This figure represents a significant increase from just seven days prior when the exit queue held 567,700 Ethereum tokens.
Explaining the significance of the validator exit queue, Ethereum protocol developer Preston Van Loon noted that it helps prevent a mass exodus of validators during a potential attack on Ethereum’s consensus. This measure is vital for maintaining the network’s economic security during times of vulnerability.
Furthermore, the number of staked Ethereum tokens actively securing the network has remained relatively stable, above 35 million tokens since mid-June. This consistency indicates a strong level of commitment from Ethereum validators, contributing to the robustness of the network’s security.
In conclusion, the recent trends in Ethereum ETFs and validator exits reveal a complex and dynamic market environment. Investors and validators alike are closely monitoring these developments to navigate the evolving landscape of the cryptocurrency space.
