Recent Developments in Ethereum ETFs
On August 6, spot Ethereum exchange-traded funds (ETFs) experienced significant inflows totaling $98.4 million, marking the second highest influx since their trading inception in July, according to data from Farside Investors. This surge followed another day of positive inflows, bringing the total for U.S.-traded Ethereum ETFs to $147.2 million over two consecutive days.
BlackRock’s Ethereum ETF, known as ETHA, saw its assets under management increase by nearly $110 million on the same day, while Fidelity’s FETH recorded inflows of $22.5 million. Conversely, Grayscale’s ETHE fund continued to face outflows, marking 11 straight trading days in the negative. However, this was accompanied by the lowest daily outflow since ETHE transitioned from a trust to an ETF format.
Current Financial Trends
As of August 6, the net outflows from the eight Ethereum ETFs that began trading in the U.S. on July 23 amounted to a negative $364 million. Despite optimistic forecasts suggesting that the entry of ETFs would boost Ethereum’s price, the anticipated impact has not materialized, as Ethereum’s value fell by 20.6% from July 23 to August 4, preceding a broader downturn in the cryptocurrency market.
A primary contributor to this price drop has been the outflows from Grayscale’s ETHE, which have exerted downward pressure on Ethereum’s performance. Additionally, significant holders of Ethereum appear to be selling, with asset manager Metalpha and an anonymous whale transferring nearly $73 million in ETH to a Binance deposit on August 5.
Market Dynamics and Selling Activity
Recent observations by the X (formerly Twitter) user Lookonchain indicate that market maker Jump Crypto has been actively unstaking ETH from Lido and shifting it to exchanges. On the morning of August 7, Jump Crypto claimed 11,501 ETH from Lido and moved it for sale, and also redeemed 19,049 ETH, suggesting further selling intentions.
Furthermore, Ethereum wallets associated with the PlusToken Ponzi scheme, which was dismantled by Chinese authorities in November 2020, transferred $464.7 million in ETH on August 7, according to Arkham Intelligence.
Ethereum Price Performance
These developments have impacted Ethereum’s trading price, which has decreased by 6.5% in the last 24 hours, reflecting the worst daily performance among the top 10 cryptocurrencies by market capitalization. As of 8:48 PM UTC on August 7, 2024, Ethereum holds the second position in market cap rankings, with a price decline of 6.14% in the past day.
Ethereum’s market capitalization stands at $282.57 billion, accompanied by a 24-hour trading volume of $24.04 billion.
Overall Crypto Market Overview
At the same time, the total cryptocurrency market is valued at approximately $1.93 trillion, with a 24-hour trading volume of $94.95 billion. Bitcoin currently dominates the market with a share of 56.06%.
