Ethereum ETF Outflows Continue As ETH Price Hits 3.5-Year Low Against Bitcoin.
The recent data on Ethereum ETF flows provides clear insights into the fluctuations within the cryptocurrency investment landscape. On September 3, 2024, Grayscale’s Ethereum Trust (ETHE) registered a substantial inflow of $52.3 million, indicating strong investor interest.
Yet, the following day, the fund experienced a significant outflow of $40.6 million, suggesting a quick change in investor strategy, possibly due to profit-taking or adjustments in response to shifting market conditions.
Ethereum ETFs Witness Continued Outflows Amid Market Caution
Other significant movements were observed on September 11 and 16, 2024, where outflows of $20.1 million and $13.8 million respectively indicated continued investor caution.
Ethereum ETF Flow Analysis. Source: Farside
On the most recent day reflected in the data, September 16, 2024, specific Ethereum ETFs saw outflows. The Fidelity Ethereum ETF (FETH) reported an outflow of $2.1 million, and the Grayscale Ethereum Trust (ETHE) saw a substantial outflow of $13.8 million.
From August 29, 2024, to September 16, 2024, the cumulative net flow into Ethereum ETFs, accounting for both inflows and outflows across different funds, is approximately $590.8 million in net outflows. This value reflects the overall reduction in holdings within ETFs.
Ethereum Hits 3.5-Year Low Against Bitcoin Amid Market Challenges
Ethereum (ETH) has hit its lowest level against Bitcoin in over three and a half years, last seen in April 2021. This significant drop has sparked discussions among analysts and investors. They are debating whether Ethereum has reached its bottom or if it could fall further.
Alex Thorn, the head of research at Galaxy, has noted a critical milestone: the ETH/BTC ratio has dipped below 0.03 for the first time in years. This marks a 53% decrease since Ethereum adopted proof-of-stake in September 2022. He expressed concerns over what might stop this downward trend.
Ethereum’s 3.5-Year Low Against Bitcoin. Source: @intangiblecoins
Fred Krueger, an investor and mathematician, dramatically described Ethereum as “on the edge of collapse” in comparison to Bitcoin. He highlighted the significant disparity in ETF inflows between the two cryptocurrencies as a contributing factor to Ethereum’s lackluster performance.
Since their launch, Bitcoin ETFs have drawn in over 305,400 BTC. In contrast, Ethereum ETFs in the U.S. have seen net outflows totaling $581 million. Grayscale’s Ether ETF has experienced the bulk of these outflows, amounting to $2.7 billion.
ETH vs. BTC: Collapse Warning by Fred Krueger. Source: X
Despite these challenges, not all market observers are pessimistic. Hedgex noted that the relative strength index (RSI) for ETH/BTC is at historic lows, a condition that has occurred only five times before in Ethereum’s history. Each of these instances was followed by significant price recoveries, suggesting potential for a future upturn in Ethereum’s market value.
Ethereum’s Daily Market Update: Price Surge and Trading Insights
At the time of writing, Ethereum (ETH) is priced at $2,366.73, marking a daily increase of 3.92%. The cryptocurrency’s market capitalization has reached approximately $284.8 billion, securing its position as the second-largest digital asset.
Ethereum Market Performance Snapshot. Source: CoinMarketCap
Despite a 9.53% decrease in trading volume over the past 24 hours, Ethereum’s value has shown resilience, with a notable upward trajectory in its price throughout the day. The volume-to-market cap ratio stands at 5.56%, reflecting active trading relative to the overall market size.
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