Spot Ethereum ETFs saw a lot of activity this past week. There were big inflows and outflows, leading to mixed feelings in the market. By the end of the week, the total net inflow into spot Ethereum ETFs reached about $105 million, thanks to a strong start. This has sparked talks about whether Ethereum (ETH) could reach the $3,000 mark. On Monday, August 5, spot Ethereum ETFs began the week positively, with net inflows of $48.8 million. BlackRock led the way, securing $47.1 million of these inflows, followed by Fidelity and VanEck, with $16.2 million and $16.6 million, respectively.
However, Grayscale’s Ethereum Trust (ETHE) faced large outflows of $46.8 million, while its smaller Ethereum ETF saw modest inflows of $7.6 million. This created a mixed start to the week, showing that investor sentiment was varied. Despite this, the positive trend continued on Tuesday, August 6, with Ether ETFs seeing $98.4 million in inflows. BlackRock led once more, bringing in a significant $109.9 million in new investments, while Fidelity also saw good results, with $22.5 million in inflows.
On the other hand, ETHE continued to face challenges, with outflows reaching $39.7 million. While the strong inflows on Tuesday lifted overall market sentiment, the ongoing outflows from Grayscale’s ETHE indicated a note of caution.
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BlackRock’s Inflows Offer Respite Amid Broader Market Uncertainty
Midweek brought a change in the trend. On Wednesday, August 7, spot Ethereum ETFs saw a total net outflow of $23.7 million. Grayscale’s ETHE had a significant outflow of $31.9 million, which overshadowed the modest $4.7 million inflow into Fidelity’s ETH ETF. This shift marked a turning point in the week, highlighting the market’s volatility.
On Thursday, August 8, outflows continued but at a slower pace. The total net outflow for Ether ETFs was $2.9 million. Grayscale’s ETHE led the outflows with $19.8 million, while its smaller Ethereum ETF managed to draw in $5 million in new investments. BlackRock’s ETH ETF also saw positive inflows of $11.7 million, which helped offset the broader trend of outflows. However, analysts from QCP Capital expect further outflows from Grayscale’s ETHE in the coming week.
The week concluded on Friday, August 9, with spot Ethereum ETFs showing a net outflow of $15.8 million. Despite this, the overall weekly total remained positive at $104.8 million. BlackRock’s Ethereum ETF led the inflows once again, bringing in $19.6 million. Fidelity’s FETH had a smaller inflow of $3.9 million. However, Grayscale’s ETHE continued to struggle, with heavy outflows of $41.7 million. The cumulative historical net outflow for ETHE has now reached an impressive $2.29 billion.
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ETH Stability Amid Mixed ETF Performance: Is a Market Shift on the Horizon?
Despite the mixed performance of spot Ethereum ETFs, ETH’s price has remained relatively stable, trading between $2,300 and $2,650 throughout the week. However, market behavior hints at a possible shift in sentiment. QCP Capital’s analysis points to a fundamental change in the liquidity profiles of Bitcoin (BTC) and Ethereum. While BTC is increasingly viewed as “digital gold” and attracting institutional investors, ETH seems to be losing some of its appeal as a speculative asset.
This shift became clear on August 5, when ETH experienced a 22% drop in value, compared to a 16% decline in BTC. The growing gap in implied volatility between BTC and ETH, which has widened from 5% to 20% since the launch of spot Ethereum ETFs, further indicates that investors are rethinking their strategies.
As Ethereum’s price hovers around the $2,600 mark, bulls might try to push it toward $3,000, as reported by Coingape earlier. However, technical indicators like the upcoming death cross between the 50-day and 200-day exponential moving averages (EMAs) suggest that selling pressure could increase, potentially driving ETH’s price down to $1,830.
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