The Ethereum price performance has been a significant supply of concern for traders over the previous few weeks, persisting in a downward development. What makes the token’s struggles much more worrying is that it has not proven any indicators of reduction regardless of the latest launch of spot ETH ETFs (exchange-traded funds) within the United States.
However, it seems that the underwhelming performance of the ETH ETFs — to date — may even be contributing to the Ethereum worth troubles in latest weeks. Specifically, Grayscale has been seeing a major circulation of capital out of its Ether fund, the Grayscale Ethereum Trust (ETHE).
Grayscale Ethereum Trust Hits $2.1 Billion In Outflows
Following the primary full week of buying and selling, the US spot Ethereum ETF market noticed a major outflow of funds from the crypto merchandise. According to knowledge from SoSoValue, a complete of $169.35 million flowed out of the ETH exchange-traded funds previously week.
While this worth nonetheless represents a major quantity of outflow from the spot Ethereum funds, it’s greater than 50% lower than the outflow witnessed within the debut week. In the debut week, the ETH ETF market noticed a web outflow of greater than $341 million.
The main fund chargeable for this degree of capital outflow is the Grayscale Ethereum Trust, which has seen a withdrawal of over $2.1 billion previously two weeks. ETHE witnessed a web outflow of over $1.5 billion within the week it launched.
Grayscale Ethereum Trust (ETHE) | Source: SoSoValueOn Friday, August 2, the Grayscale Ethereum Trust noticed a complete outflow of $61.43 million, in response to knowledge from SoSoValue. This newest fund motion brings the overall web asset worth of ETHE to just a bit beneath $6 billion.
Similarly to when the spot Bitcoin ETFs launched, holders of Grayscale’s ETHE appear to be redeeming their shares from the fund, having been unable to take action for years. And as seen with BTC, the huge outflows appear to be placing an honest quantity of downward stress on the Ethereum worth.
Ethereum Price Overview
As of this writing, the Ethereum price stands at round $2,907, reflecting a 2.2% decline in worth previously 24 hours. According to knowledge from CoinGecko, the cryptocurrency is down by greater than 10% within the final seven days.
This final seven-day efficiency underscores the ETH token’s struggles previously few weeks. Data from CoinGecko reveals that the Ethereum worth has fallen by practically 8% previously month.
Nevertheless, Ether maintains its place because the second-largest cryptocurrency within the sector, with a market cap of over $347 billion.
The Ethereum worth on the every day timeframe | Source: ETHUSDT chart on TradingView
Featured picture from iStock, chart from TradingView
