Ethereum Price Drops 12% As Spot ETFs Witness Significant Net Outflows
22 Dicembre 2024 - 1:00PM
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The Ethereum price has been a joy to watch in recent weeks after
initially struggling to keep pace with other large-cap
cryptocurrencies. However, the past week will be a quick one to
forget for the crypto market, especially the altcoin, which
declined in value by over 12%. While this price slump experienced
by Ethereum has been linked to the US Federal Reserve rate cut, the
recent drab performances of the spot ETH exchange-traded funds
(ETFs) could also be associated. After a lengthy spell of positive
inflows, investor interest in the US-based ETH ETFs seems to be
losing momentum. Spot ETH ETFs Snap 18-Day Positive Inflows Streak
According to data from SoSoValue, the US-based spot Ethereum ETFs
logged a total net outflow of $75.11 million on Friday, December
20. This marked the first time the Ethereum funds would be
registering back-to-back negative performances. On Thursday,
December 19, the Ethereum exchange-traded funds recorded a total
net outflow of $60 million. This single-day performance put an end
to the ETH ETF’s 18-day streak of positive inflows and the first
negative day in December for the products. Related Reading: XRP
Could Be The Altcoin To Recover Quickly, CryptoQuant Analyst
Explains Why Surprisingly, BlackRock’s Ethereum Fund (with the
ticker ETHA) was the only spot ETF that recorded outflows on
Friday. According to market data from SoSoValue, the ETHA
exchange-traded fund posted nearly $103.7 million to close the
week. Meanwhile, Fidelity’s Ethereum Fund (with the ticker
FETH) recorded $12.95 million in net inflow on Friday. Grayscale’s
Ethereum Trust (ETHE) and Mini Trust (ETH) were the only other ETFs
that registered positive inflows on the day, with $7.51 million and
$8.10 million, respectively. These back-to-back days of negative
performances saw a net $135 million flow out of the ETH
exchange-traded funds in just two days in the past week. However,
the crypto products finished with a weekly total net inflow — for
the fourth consecutive week — of $62.73 million. Similarly, the
spot Bitcoin ETFs appear to be losing interest from investors, as
most funds recorded outflows to close the past week. The crypto
products registered a daily net outflow of approximately $276
million on Friday. Ethereum Price As of this writing, the Ethereum
price stands at around $3,342, reflecting a 2.4% decline in the
past 24 hours. Given their impact on the value of ETH, it might be
important for the spot ETFs to return to positive inflows if the
Ethereum price is to see any relief. Related Reading: Bitcoin Drops
Below $98K—Is This the Perfect Buying Opportunity for Investors?
Featured image from iStock, chart from TradingView
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