Investors witnessed an interesting development in the Crypto market when ETH suddenly increased while BTC dropped sharply.
Although ETH ETFs are recording a streak of negative flows, analyst Mads Eberhardt (Steno Research) predicts this trend could soon reverse. He said the outflow from Grayscale's ETHE fund will ease this week, contributing to the recovery of ETH price.
Agreeing with Mads Eberhadt, analyst Evanss6 further cited the performance between the launches of the Spot BTC ETF & Spot ETH ETF. Specifically, he pointed out that outflows from the Spot BTC ETF bottomed out on the 7th day of trading - which occurred when outflows from the Grayscale Bitcoin Trust (GBTC) reached nearly 13.2% of initial AUM.
He noted that the selling pace of the ETHE fund was even much faster than that of the GBTC fund, with AUM dropping nearly 18% in just five trading sessions. Therefore, Evanss6 believes that capital inflows into Spot ETH ETF funds may soon turn positive as selling pressure from the ETHE fund declines.
Overall, the expectation of capital inflows into spot ETH ETFs reversing has partly helped ETH recover in recent days. Meanwhile, the peak inflow of capital into BTC ETF is the reason why BTC price gradually decreased.
