Since its introduction on July 23rd, Ethereum [ETH] exchange-traded funds (ETFs) have faced challenges in attracting funds when compared to Bitcoin [BTC] ETFs. The trend of outflows from ETH ETFs has been consistent, leading to a cumulative outflow of $79.3 million on September 23rd, marking the largest single-day outflow since July 29th.
This pattern has sparked conversations and anxiety within the cryptocurrency community, prompting discussions on whether Ethereum can reverse this trend or if the ongoing outflows will persist.
ETH ETFs Encounter Substantial Capital Outflows
The significant outflows from ETH ETFs can be mainly attributed to Grayscale’s ETHE, which recently experienced a considerable outflow of $80.6 million. Conversely, Blackrock’s ETHA and several other ETH ETFs reported no inflows during this period. Bitwise’s ETHW was an exception, attracting a modest inflow of $1.3 million.
An analysis of the data reveals that most ETH ETFs have consistently shown zero flows, with occasional inflows from ETHA, Fidelity’s FETH, and ETHW.
Nevertheless, the heavy outflow from ETHE outweighed the inflows, resulting in an overall negative net flow.
Total Flow Since Inception — Detailed
As of September 23rd, ETHW’s net purchases amounted to $320 million, with its holdings of Ether surpassing 97,700 coins, valued at approximately $261 million based on current market prices.
Furthermore, Blackrock’s ETHA emerged as the top-performing ETH ETF in terms of inflows since its establishment, accumulating a total of $1,039.6 million, the highest figure among its peers. In contrast, Grayscale’s ETHE encountered significant hurdles, witnessing a massive total outflow of $2,848.4 million, surpassing the combined outflows of all other ETH ETFs, which collectively sum up to $686.9 million.
Community Sentiment
This stark difference underscores the diverse investor sentiments and performance dynamics within the ETH ETF market.
Commenting on this, one user expressed,
“The recent ETF flow data from September 23rd indicates a significant outflow, primarily from ETHE with an $80.60M decline. This suggests that investors may be shifting away from Ethereum-focused ETFs.”
Another user added his perspective to the discussion.
ETH Price Movement
In terms of price action, Ethereum exhibited strength on September 23rd, recording a 3.02% increase to reach $2,656.39, contrasting the performance of ETH ETFs. However, at the time of writing, ETH experienced a 0.75% drop, trading at $2,635.08 according to CoinMarketCap.
It is noteworthy that the Relative Strength Index (RSI) remained above the neutral level at 59, indicating that bullish momentum is prevailing, despite some short-term corrections. These minor declines are expected to be temporary and should not overshadow the overall positive outlook for ETH, indicating that the current bearish movements are not indicative of a long-term trend reversal.