According to one analyst, outflows from Grayscale's Ethereum ETF could slow down in the near future, potentially affecting the market positively.
Steno Research senior analyst Mads Eberhardt said large capital outflows from Grayscale's ETHE "will likely" slow this week. ETHE has seen outflows of more than $1.7 billion since the conversion, about 18% of the $9 billion originally in ETHE before it was converted to an ETF on July 24.
This number has left ETH ETFs seeing no net inflows over the past four days, even as eight other ETH ETFs have consistently seen positive inflows.
BlackRock's ETH spot fund saw the largest inflows with a cumulative inflow of $500 million, while Bitwise's fund saw $276 million and Fidelity was third with a net inflow of $244 million . However, Eberhardt believes that strong initial capital outflows are responsible for the short-term price uptrend.
“Grayscale Bitcoin ETF outflows slowed significantly after the 11th trading session,” he said.
Trader Evanss6 echoed Eberhardt's sentiments in a July 30 post to X, comparing the Bitcoin ETF to the Ethereum ETF. Evan wrote that outflows from the Bitcoin ETF bottomed on the seventh day of trading, with the bottom coming when cumulative outflows from the Grayscale Bitcoin Trust (GBTC) reached 13.2% of the original fund.
“Grayscale Bitcoin ETF outflows slowed significantly after the 11th trading session,” he said.
Trader Evanss6 echoed Eberhardt's sentiments in a July 30 post to X, comparing the Bitcoin ETF to the Ethereum ETF. Evan wrote that outflows from the Bitcoin ETF bottomed on the seventh day of trading, with the bottom coming when cumulative outflows from the Grayscale Bitcoin Trust (GBTC) reached 13.2% of the original fund.