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Highlights
- Spot Ethereum ETFs had $104.8M in total inflows despite midweek outflows.
- Grayscale's ETHE faced substantial outflows, totaling $41.7M on Friday.
- Institutional investors favored BTC, with ETH losing some appeal.
Spot Ethereum ETFs experienced significant activity over the past week. These products recorded both substantial inflows and outflows, leading to a mixed sentiment in the market. The cumulative net inflow into spot Ethereum ETFs reached nearly $105 million by the end of the week owing to the strong start. Hence, it sparked discussions on the potential for Ethereum (ETH) to push towards the $3,000 mark.
A Look At Spot Ethereum ETF Weekly Flows
On Monday, August 5, spot Ethereum ETFs began the week on a positive note with net inflows totaling $48.8 million. BlackRock led the market, securing $47.1 million of these inflows. Fidelity and VanEck followed with $16.2 million and $16.6 million, respectively.
However, Grayscale’s Ethereum Trust (ETHE) experienced significant outflows of $46.8 million, while its smaller Ethereum ETF saw modest inflows of $7.6 million. This resulted in a mixed start for the week, reflecting the varying sentiment among investors.
Nonetheless, the positive momentum continued on Tuesday, August 6, as Ether ETFs recorded $98.4 million in inflows. BlackRock again dominated, attracting a whopping $109.9 million in new investments. Moreover, Fidelity also performed well, bringing in $22.5 million.
Conversely, ETHE continued to struggle, with outflows reaching $39.7 million. The strong inflows on Tuesday provided a boost to the overall market sentiment, but the persistent outflows from Grayscale’s ETHE suggested caution.
The Outflow Trend Emerges
Midweek saw a shift in the trend. On Wednesday, August 7, the total net outflow for spot Ethereum ETFs amounted to $23.7 million. Grayscale’s ETHE faced an outflow of $31.9 million, overshadowing the modest inflow of $4.7 million into Fidelity’s ETH ETF. This reversal marked a turning point in the week, highlighting volatility.
On Thursday, August 8, the market continued to see outflows, although at a reduced pace. The total net outflow for Ether ETFs was $2.9 million. Grayscale’s ETHE led the outflows with $19.8 million, while its mini Ethereum ETF managed to attract $5 million in new investments.
BlackRock’s ETH ETF also saw positive inflows of $11.7 million, partially offsetting the broader trend of outflows. However, analysts from QCP Capital predicted further outflows from Grayscale’s ETHE in the coming week.
The week ended on Friday, August 9, with spot Ethereum ETFs recording a net outflow of $15.8 million. Despite this, the overall weekly total remained positive at $104.8 million. BlackRock’s Ethereum ETF once again led the inflows with $19.6 million.
Meanwhile, Fidelity’s FETH saw a more modest inflow of $3.9 million. On the flip side, Grayscale’s ETHE continued to face heavy outflows, losing $41.7 million. The cumulative historical net outflow for ETHE has now reached a staggering $2.29 billion.
Also Read: Cathie Wood Sells Ethereum Futures ETFs, Bearish Signal For Spot ETFs?
Will ETH Surge To $3000?
Despite the mixed performance of spot Ethereum ETFs, the price of ETH has remained relatively stable. The ETH price traded between $2,300 and $2,650 throughout the week. However, the market behavior suggests a potential shift in sentiment.
According to analysis from QCP Capital, there is a fundamental change in the liquidity profiles of Bitcoin (BTC) and Ethereum. While BTC is increasingly seen as “digital gold,” attracting institutional investors. On the contrary, ETH appears to be losing some of its appeal as a speculative asset.
This shift was evident in the price action on August 5, when ETH saw a 22% drop in value, compared to a 16% decline in BTC. The widening gap in implied volatility between BTC and ETH, which has grown from 5% to 20% since the introduction of spot Ethereum ETFs. This further supports the notion that investors are adjusting their strategies.
As Ethereum price hovers around the $2,600 level, bulls may attempt to push the price towards $3,000, as reported by Coingape earlier. However, technical indicators, such as the impending death cross between the 50-day and 200-day exponential moving averages (EMAs), suggest that selling pressure could increase. This could potentially drive ETH price down to $1,830.
Also Read: Solana Vs Ethereum: Experts Weigh On After Recent Market Crash
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