Grayscale Ethereum ETF Outflows Surge Over $2 Billion, More Pain Ahead?

This week, the spot Ethereum ETFs have witnessed volatile flows with Grayscale and BlackRock dominating a majority of this activity. Yesterday, August 1, the total outflows from the Grayscale Ethereum ETF (ETHE) surged past $2 billion. Thus, within just eight trading sessions, the ETHE AUM has tanked by 22% and is currently just above $7 billion.

Grayscale Ethereum ETF Outflows subside

The good thing is that the outflows from the Grayscale Ether ETF (ETHE) have been on a decline. On Thursday, August 1, ETHE’s net outflow stood at $78 million, thereby dropping under $100 million for the first time since inception. The Grayscale Ethereum mini-ETF (ETH) is compensating for some of the outflows, with more than $200 million in inflows so far.

A day before on Wednesday, the spot Ether ETF flows turned negative after the Federal Reserve kept interest rates unchanged citing the possibility of a September rate cut. However, it flipped into positive territory on Thursday, August 1.

Also Read: Bank of England Cuts Interest Rate First Time in 4-Years, Bitcoin Recovery Soon?

The spot Ethereum ETFs clocked net inflows of clocked inflows of $26 million yesterday. BlackRock Ether ETF (ETHA) saw inflows to the tune of $89.6471 million. As a result, BlackRock ETHA’s net inflows since inception have crossed $710 million. Fidelity’s FETH recorded minor inflows of around $11.4 million.

Ethereum Whale Activity Spikes With ETH Volatility

The Ethereum blockchain witnessed strong whale activity recently as the ETH price flirts around $3,165 levels.

Explaining the reason behind the recent ETH price drop, Lookonchain stated that three wallets associated with Elwood have collectively deposited a total of 19,500 ETH, valued at $64 million, on crypto exchange binance in the last two days. As per Lookonchain, these wallets have a history of depositing ethereum to Binance, just before the crash.

Who dumped $ETH causing the price to drop?

We noticed 3 wallets related to #Elwood deposited 19,500 $ETH($63.66M) to #Binance in the past 2 days!

Coincidentally, these wallets deposited $ETH to #Binance every time before the price crashed!https://t.co/ME12Up3BIL pic.twitter.com/9dEbivNWrZ

— Lookonchain (@lookonchain) August 1, 2024

Furthermore, as per data from Greeks.Live, a total of 180,000 Ethereum options are set to expire today with a put-call ratio of 0.55, a notional value of $600 million, and a max pain point of $3,300.

Also Read: SHIB Burn Rate Rockets 2600% Fueling Recovery Speculations