After a roaring start, United States-based spot Ether exchange-traded funds (ETFs) have logged heavy outflows on their second trading day, largely due to heavy bleeding from Grayscale’s converted Ethereum Trust ETF (ETHE).
The price of the second-biggest digital coin by market cap fell over 8% as investors continue to be concerned about the outflows from ETHE.
Investors Withdraw $133 Million From Ether Funds
The highly-awaited debut of spot Ethereum-based ETFs has failed to kindle the market as hoped. According to data from Farside Investors, the nine newly launched spot ETH exchange-traded funds saw $133.16 million outflows on Wednesday, reversing course from Tuesday’s positive flows.
These new ETFs were dragged into negative territory by heavy selling from the recently converted Grayscale Ethereum Trust (ETHE), which hemorrhaged $810 million in net outflows, as per SoSoValue data.
Other ETFs registered net inflows on day two of trading. The Fidelity Ethereum Fund (FETH) and the Grayscale mini trust led the inflow pack, taking in $74.46 million and $45.93 million, respectively. The Bitwise Ethereum ETF (ETHW) witnessed over $29 million in net inflows, while VanEck’s Ethereum ETF (ETHV) pulled in $20 million.
The recent spot Ethereum ETF performance isn’t unusual. BTC ETFs recorded cumulative net outflows for roughly six out of 10 of their first trading days, with many attributing the lag to outflows from the GBTC ETF.
Ether’s (ETH) price action disappointed investors despite a fairly successful ETF launch Tuesday, with ETH slumping to as low as $3,156, an almost 8.5% drop over the past 24 hours.
The largest altcoin has suffered from the double-whammy of disappointing ETF flows and the recent US stock market meltdown. U.S. technology stocks took a big hit on Wednesday, causing the tech-heavy Nasdaq 100 index to nosedive by 3.65%, its worst decline since October 2022.
ETH Rally To $7K Still On The Cards
Despite the current gloomy price performance, crypto commentators still believe Ether will enjoy a strong rally buoyed by ETF inflows this year, similar to what was observed with BTC after the debut of spot ETFs when its price leaped from around $25K to nearly $74,000 in March.
Popular analyst Michael van de Poppe stated in a July 24 post on the X (aka Twitter) platform that he expects the Ether price to double soon.
“Probably it’s very likely to suspect that a price rally from $3,500 to $7,000-7,500 is on the cards,” he explained, adding that Ethereum is currently the most undervalued asset in the market.
“One-two weeks for downward momentum before the real surge of Ethereum toward a new all-time high,” van de Poppe summarized.
