After three days of active trading, the volume of Ethereum spot ETFs fell below $900 million on Thursday, showing signs of investment demand slowing down after the initial boom.
According to data from Yahoo Finance compiled by The Block Pro Research, the total volume of Ethereum spot ETFs on Thursday reached about $850 million, down from more than $1.05 billion on Tuesday and $950 million. USD on Wednesday. The cash flow also recorded a reversal with a net withdrawal of 133.16 million USD on Wednesday, in contrast to the inflow of 106.78 million USD on Tuesday.
Notably, the Grayscale Ethereum Trust (ETHE) continued to see strong net withdrawals, reaching $326.86 million on Wednesday, according to data from SosoValue. This was also the only Ether fund to record cash outflows that day. Prior to Thursday's trading session, Ethereum prices were down more than 7%.
Talking about the sharp decline in the market, Justin d'Anethan from Keyrock said that this was not only not surprising but was also expected. The market's memory is very short, he explained. Although spot Bitcoin ETFs initially increased the price of Bitcoin, soon after, the cryptocurrency market declined, indicating that the initial price increase was temporary and did not sustain a long-term uptrend. .
As of now, Ethereum price is still down nearly 8% to $3,102, with volume over the past 24 hours reaching $25.9 billion, according to The Block 's ETH price page.
Compare with the case of Bitcoin
Juan Leon, investment strategist at Bitwise, made comparisons with Bitcoin's performance after the Bitcoin spot ETF was listed. “After the ETP launch, BTC price initially declined due to a combination of 'sell the news' and large outflows from GBTC. Then, inflows into other ETPs increased and sent prices skyrocketing.”
Historical Perspective: BTC Price Since ETPs Launched
— Juan Leon (@singularity7x) July 25, 2024
January 11-January 22 (8 trading days): -15%
Jan 23-today: +65%
After ETPs launch, BTC price was initially depressed from a combination of "sell the news" and large outflows from GBTC. subsequently, inflows into other ETPs…
Similarly, ETH also dropped nearly 10% after two trading days, along with significant outflows from Grayscale's Ethereum Trust (ETHE). However, Leon also noted institutional demand for crypto assets is growing, and ETH now joins BTC as the only two crypto assets with an ETF package.
Although it is impossible to confirm whether ETH will completely repeat the trajectory of BTC , the emergence of the Ethereum spot ETF is expected to open the door for institutional Capital to enter the market, thereby promoting sustainable development of Ethereum in the long term.
