Fun

Grayscale’s ETH ETF outflows could subside this week — Analyst

News Feed - 2024-07-30 02:07:14

Tom Mitchelhill3 hours agoGrayscale’s ETH ETF outflows could subside this week — AnalystEther ETFs posted a net outflow of $98 million on July 29, marking the fourth consecutive day of bleeding — but analysts predict this trend could reverse soon.1196 Total views1 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksMassive outflows from Grayscale’s recently converted Ether exchange-traded fund (ETF) — the Grayscale Ethereum Trust (ETHE) — should subside by the end of this week, causing an upward shift in the price of ETH, according to an analyst. 


In a July 30 post to X, Steno Research senior analyst Mads Eberhardt said it’s “likely” the massive outflows from Grayscale’s ETHE will subside this week. His comments come as Ether (ETH) ETFs posted their fourth day of outflows at $98 million. Source: Mads Eberhardt


Since its conversion, ETHE has hemorrhaged over $1.7 billion in outflows. This figure accounts for nearly 18% of the $9 billion initially contained in the ETHE before its conversion to an ETF on July 24.


The figure has held back Ether ETFs from making net inflows for the last four consecutive days despite the other eight ETH ETFs posting consistently positive flows. 


BlackRock’s iShares Ethereum Trust (ETHA) has received the largest cumulative inflows, at $500 million. The Bitwise Ethereum ETF (ETHW) has received $276 million, and the Fidelity Ethereum Fund (FETH) came in third with $244 million in net inflows.Ether ETFs have seen four consecutive days of outflows. Source: Farside Investors


However, Eberhardt sees the strong early outflows as a reason for bullishness in the short term.


“The Grayscale Bitcoin ETF outflow subsided significantly following the eleventh trading session,” he said. “Since the Grayscale Ethereum ETF has experienced a much higher outflow relative to AUM [assets under management], we believe that peak outflow will occur sometime this week.”


“So, what happens once we move past the peak of these Grayscale outflows? Take a guess,” Eberhardt wrote in a follow-up post to X.


Pseudonymous trader Evanss6 echoed Eberhardt’s view with a side-by-side comparison of the launch of spot Bitcoin (BTC) ETFs and Ether ETFs in a July 30 post to X.


Related:Crypto ETFs to hit ‘model portfolios’ toward year end: BlackRock


Evan wrote that the outflows from Bitcoin ETFs bottomed on the seventh trading day, and the bottom occurred when cumulative Grayscale Bitcoin Trust (GBTC) outflows reached 13.2% of the original fund.Source: Evanss6


He added that Bitcoin proceeded to “rip [approximately] 92% in 50 days” following the bottoming of GBTC outflows.


In contrast, he noted that Grayscale’s Ether ETF was “sold much faster” than GBTC and had already reached 17.3% in just four days, with a shallower overall pullback on the price of ETH relative to BTC at the time.


Meanwhile, Samara Cohen, BlackRock’s investment chief for ETF and index investments, said there is strong demand for ETH exposure from institutional investors, adding that crypto-based ETFs will begin making their way into “model portfolios” by the end of 2024.


“Investors really want to get their ETH exposure, especially if they’re going to use it in the context of an overall portfolio in an ecosystem they have confidence in,” she said.


Magazine:Decade after Ethereum ICO: Blockchain forensics end double-spending debate# Cryptocurrencies# Business# Ethereum# Adoption# Ether Price# Ethereum Price# Ethereum ETFAdd reaction

News Feed

Amaka Nwaokocha14 hours agoNigeria to issue verifiable blockchain certificates for NYSCThis initiative aims to house all NYSC certificates on the blockchain, providing individuals with the means to easily verify and auth
GBTC outflows top $358M, but one theory suggests it’s almost over
Tom Mitchelhill3 hours agoGBTC outflows top $358M, but one theory suggests it’s almost overIt’s been another big day of outflows from Grayscale’s Bitcoin ETF, but ETF analyst Eric Balchunas believes they will taper
Amaka Nwaokocha14 hours agoPolygon 2.0 begins groundwork for decentralized governanceThe expansion will encompass all blockchains and applications running on the Polygon network, democratizing the upgrade process and fos
Dogecoin Open Interest Averages $2 Billion In June As Price Struggles Below $0.2
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Biggest Movers: ADA Rebounds, While FIL Hits 2-Week High on Saturday
Biggest Movers: ADA Rebounds, While FIL Hits 2-Week High on Saturday Despite a largely volatile session, there have been a few tokens which managed to evade the red wave. Cardano r
Game Space Releases Merge Bird on Its GameFi-as-a-Service (GaaS) Platform
Game Space Releases Merge Bird on Its GameFi-as-a-Service (GaaS) Platform press release PRESS RELEASE. Singapore – Game Spaceis proud to announce the release of Merge Bird on
Jesse Coghlan5 hours agoMiami Heat’s Jimmy Butler seeks dismissal from Binance promo class suitLawyers for the basketball star claim he did not mention any alleged securities but instead warned of celebrities promoting
NFL Bars Teams From Participating in Certain Cryptocurrency and NFT Ventures: Report
NFL Bars Teams From Participating in Certain Cryptocurrency and NFT Ventures: Report According to a recent report, the National Football League (NFL) advised teams that they could
Ana Paula Pereira3 hours agoJPMorgan forecasts limited downside for crypto markets: ReportJPMorgan"s analysts consider Bitcoin"s declining open interest to be a sign that the current price trend may be weakening.1604 Tot
LBank Exchange Will List Cryptostone (CPS) on July 25, 2022
LBank Exchange Will List Cryptostone (CPS) on July 25, 2022 press release PRESS RELEASE. INTERNET CITY, DUBAI, Jul. 24, 2022 – LBank Exchange, a global digital asset trading
Hoo’s First Stage of Token-Repurchase Program Completed With Over 400,000 HOO Token Added to Its AMM Liquidity Pool
Hoo’s First Stage of Token-Repurchase Program Completed With Over 400,000 HOO Token Added to Its AMM Liquidity Pool press release PRESS RELEASE. On February 17th, 2022, Hoo announ
Paypal Coin: Payments Giant Explores Launching Stablecoin to Boost Crypto Offerings
Paypal Coin: Payments Giant Explores Launching Stablecoin to Boost Crypto Offerings Paypal is reportedly working on a stablecoin backed by the U.S. dollar to expand its cryptocurre