Ether Price Dumps Almost 4% as Spot Ethereum ETF Outflows Reach $77M
The nine spot Ethereum ETFs in the US saw net outflows totaling $77.21 million on Wednesday, reversing the previous day’s positive trend.
The outflows come amidst Ether’s price faltering below $3,200.
Spot Ether ETFs’ Outflow Continues
The Grayscale Ethereum Trust (ETHE) recorded $133.33 million in net outflows on July 31st, according to SosoValue data. Since converting into an ETF, ETHE has lost almost $2 billion in outflows so far.
On the other hand, the Grayscale Ethereum Mini Trust (ETH) continued to maintain an inflow streak for seven consecutive days. It attracted $19.5 million on the closing day of July, bringing its total net inflows to over $200 million.
Fidelity’s FETH followed suit with $18.8 million in inflows, while BlackRock’s ETHA and VanEck’s ETHV saw inflows of $4.98 million and $4.81 million, respectively. Bitwise’s ETHW recorded $4.71 million in inflows, and 21Shares’ CETH saw $3.38 million for the same period.
Meanwhile, Franklin Templeton’s EZET and Invesco’s QETH did not record any flows for the day.
The latest outflows come just a day after spot Ethereum ETFs recorded net inflows for the second time in their existence. However, the $33.7 million inflows failed to provide a significant boost to Ether prices, which, according to QCP Capital, have been underperforming compared to Bitcoin for the past month.
Institutional Interest
At the time of writing, Ether was trading near $3,188, down by 4% over the past day. For the price to gain traction, the leading altcoin needs increased institutional interest. However, experts have not seen that trend just yet. In fact, MV Capital partner Tom Dunleavy believes August will likely remain a month of net outflows for spot Ethereum ETFs.
“We’re likely to continue to see net ETH ETF outflows for August. GBTC is roughly ~20% of BTC ETF $ amt. If ETHE follows the same path as $2B in AUM, down from ~$7B today. At $1B or so a week in ETH outflows, we should settle in a new steady state for ETH by the end of August.
Last month, Binance CEO Richard Teng also echoed a similar sentiment when he said that a steady capital deployment into these ETFs is anticipated. In a statement to CryptoPotato, Teng, however, added that it is unlikely for the funds to be dramatic initially and will instead rely on various macroeconomic factors.
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