The nine spot Ethereum ETFs in the US experienced a significant net outflow of $77.21 million on Wednesday, marking a reversal from the previous day’s positive trend. This outflow coincided with Ether’s price falling below $3,200, indicating a lack of investor confidence in the cryptocurrency.
The Grayscale Ethereum Trust (ETHE) reported a staggering $133.33 million in net outflows on July 31st, based on SosoValue data. Since transitioning into an ETF, ETHE has witnessed almost $2 billion in outflows, highlighting a concerning trend for this particular investment vehicle.
On the contrary, the Grayscale Ethereum Mini Trust (ETH) managed to sustain a streak of seven consecutive days with inflows. It attracted $19.5 million on the last day of July, accumulating total net inflows exceeding $200 million. Additionally, Fidelity’s FETH saw a healthy inflow of $18.8 million, while BlackRock’s ETHA and VanEck’s ETHV received $4.98 million and $4.81 million in inflows, respectively.
Bitwise’s ETHW recorded $4.71 million in inflows, and 21Shares’ CETH gathered $3.38 million during the same period. However, Franklin Templeton’s EZET and Invesco’s QETH did not record any flows for the day, demonstrating a lack of interest in these specific Ethereum ETFs.
These recent outflows follow a day where spot Ethereum ETFs displayed net inflows for only the second time in their history. Despite witnessing $33.7 million in inflows, Ether prices failed to see a significant boost. In fact, Ether was trading near $3,188 at the time of writing, down 4% over the past day. This underperformance relative to Bitcoin has raised concerns among investors and analysts.
Expert Predictions and Future Outlook
Experts like Tom Dunleavy of MV Capital anticipate that August will likely continue to see net outflows for spot Ethereum ETFs. Referring to the downslide in AUM for ETHE, he suggests that a new steady state for Ether may be established by the end of August. Binance CEO Richard Teng has also echoed similar sentiments, indicating that a consistent capital deployment into these ETFs is expected.
The outlook for Ethereum ETFs in the US remains mixed, with significant outflows affecting certain funds while others continue to attract investor interest. Ether’s price performance and institutional involvement will be critical factors in shaping the future trajectory of these investment vehicles.
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