The launch of spot Ethereum ETFs was a big deal in the crypto world, but the initial hype hasn’t translated into consistent success.
Outflows Dominate the First Week
The first week of trading saw a net outflow of $341 million from the new Ethereum ETFs. While the first day saw a solid inflow of $106.8 million, the following days saw significant outflows, with over $133 million leaving on Wednesday, $152 million on Thursday, and a whopping $162 million on Friday.
Grayscale’s ETH Trust Takes the Lead
Grayscale’s ETH Trust (ETHE) was responsible for a large chunk of the outflows, with over $356 million leaving the fund on Friday alone. Despite this, ETHE has still seen a cumulative net inflow of $1.51 billion since its launch.
Ethereum Price Struggles
The launch of the ETFs hasn’t been a boost for Ethereum’s price. In fact, the price has dropped by more than 7% in the past week.
New Money Has Less Impact on Ethereum
According to CryptoQuant, new money flowing into Ethereum has a less significant impact on its market capitalization compared to Bitcoin. This means that each dollar invested in Bitcoin has the potential to increase its market cap by $5, while the same dollar invested in Ethereum only increases its market cap by $1.3. This difference in impact suggests that Ethereum’s price may be less sensitive to new investments compared to Bitcoin.
