Ethereum Price in Downtrend Despite Spot ETH ETF Approval
Ethereum’s price has experienced a significant downturn following a substantial outflow from Grayscale’s Ethereum Trust.
Over the past two days, Grayscale’s Ethereum Trust has seen outflows amounting to 9% of its initial holdings, contributing to a net outflow of $113.3 million from newly approved spot Ether ETFs in the U.S. market.
Grayscale $ETHE holds 2.4 million Ether currently.
Outflow: 9% of its initial holding for last two days
Assume 50% would sell or switch to other ETFs(according to $GBTC track record, 9 trading days left at current pace. https://t.co/urgYSzVizR
— Trader T (@pivfund2100) July 25, 2024
Earlier this week, amidst the buzz around spot ETH ETFs being approved Grayscale transferred over $1 billion of ETH to Coinbase, while a dormant “whale” holding $3.3 million has resurfaced, signalling potential market shifts.
This development has sent ripples through the Ethereum market, resulting in downward pressure on Eth’s price.
The SEC’s recent approval of spot Ether ETFs on July 24 was initially met with optimism, with many expecting a surge in demand for Ethereum.
However, the substantial outflows indicate that major investors might be rebalancing their portfolios or shifting their assets in anticipation of market volatility.
The net outflow of over $113 million on just the second day of trading underscores the cautious approach that investors are adopting right now.
Amidst the launch of spot ETH ETF products, ETH liquidity on exchanges continues to trend downward and is now at a new yearly low of 20.8M ETH. This past week alone, over 491,000 ETH ($1.7B) was taken off of exchanges.
h/t @nansen_ai pic.twitter.com/ebTwBMnzD6
— David Alexander II (@Mega_Fund) July 24, 2024
Another factor contributing to the price
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