Ethereum’s price has been on a rollercoaster lately. After a strong run, it took a significant dive, dropping over 12% in just one week. This downturn happened alongside some interesting movements in the Ethereum ETF market.
ETF Inflows Dry Up
For nearly three weeks, US-based Ethereum ETFs saw consistent positive inflows, meaning investors were piling in. But that all changed recently. On December 19th and 20th, these ETFs experienced massive net outflows – a total of $135 million! This marked the first time they had back-to-back negative days.
Specifically:
- December 19th: $60 million outflow, ending an 18-day streak of positive inflows.
- December 20th: $75.11 million outflow. Interestingly, BlackRock’s ETHA ETF was the main culprit here, losing almost $104 million. However, other ETFs like Fidelity’s FETH saw inflows, showing some continued interest.
Despite these two negative days, the week still ended with a net positive inflow of $62.73 million for the fourth week in a row. This suggests that while there was some short-term selling pressure, overall investor interest remains.
It’s worth noting that Bitcoin ETFs also saw significant outflows around the same time.
Ethereum Price Slumps
As of writing, Ethereum is trading around $3,342, down about 2.4% in the last 24 hours. The recent ETF outflows might be a contributing factor to this price drop, and a return to positive ETF inflows could potentially help the price recover.
