Happy Friday, HODLers! Ready to wrap up the week with a fresh look at the crypto markets from the sharpest eye. The eye that will rest behind, surfing the financial markets for you, while you experience the start of the new premier league season.
More: SEC Approves Ether ETFs: Exploring the Pitfalls
Let’s dive into the performance of the second-largest cryptocurrency ETF, spot Ether exchange-traded fund.
Spot Ethereum ETFs launched only a month ago, and since then, it’s rained, poured, drizzled and chucked it down.
The second-largest cryptocurrency, which also doubles as the largest altcoin has lost almost a third of its value. Before the launch, ETH was trading around the $3,500 price level.
Spot Ether ETF’s Perfomance this Week
We saw promising figures when this week started, but unfortunately, the ETFs three-day streak of inflows has been replaced by a staggering $39 million in net outflows on the fourth-day, on Thursday.
Out of the nine new spot Ethereum ETFs that hit the market in July, Grayscale’s ETHE is the only one that did not manage to convince funds to stick around on Thursday— over $42.52 million of its fund decided to peace out and head for the exits on that day.
Well, Maybe the fund should’ve offered snacks.
The Mini Trust spot Ethereum fund from Grayscale, which is the second-largest spot Ethereum ETF by amount of net assets, did not record any flows on Thursday after it posted a moderate $2.26 million net inflows on Wednesday.
Fidelity FETH and Blackrock ETHA had $2.54 million and $770,350 inflows, respectively, while the rest of the funds recorded zero flows.
The total daily volume for the nine asset funds clocked $240.58 million, which is higher compared to $155.91 million on Wednesday, and $190.76 million on Tuesday, however, the previous three days, Monday till Wednesday , they all recorded inflows with Thursday breaking the 3-day streak.
What’s surprising about this not-so-small of a figure is it covers a time stretch that features a mini market meltdown that began two weeks ago, with tumultuous global economic tensions, which took down everything in its path including, equities, loans, even gold didn’t stand a chance. And let’s not forget Bitcoin which shrunk from $65,000 to around $50,000, while Ether, took nosedive to $2,100. At the same time, this short-term snag could have resulted in Ethereum's 27% plummet since the funds made their grand entrance at the close of July.
Ethereum price drop since Spot Ethereum ETF launch
With the shifting political winds, possible letdowns on interest rate cuts, and the usual dose of uncertainty, it's no wonder the short-term crypto outlook feels shaky.
The launch of Ether ETFs in the US was hyped up like the latest superhero movie, and for good reason.
One of which is because it marked a watershed moment for crypto. The crypto world had been wrestling regulators for years, trying to get funds that were actually backed by Bitcoin and Ether off the ground.
When Bitcoin ETFs finally hit the market in January, they blew the roof off, raking in $50 billion faster than anyone expected—yes, even the most bullish analysts were left picking their jaws off the floor.
Now, with Ether ETFs joining the party, the stakes were much higher, and the excitement more explosive only that many market participants have remained disappointed that Ether’s institutional products have not lived up to their hype.
More: Ethereum Wants to Beat Bitcoin, Thanks to the SEC - K33 Research
Meanwhile, we cannot quit be dismissing the ETFs given the dash of macroeconomic chaos with investors globally on a wild ride lately, trying to figure out if the US economy is doing fine or just pretending, all while Japan’s market rollercoaster sent tremors across the globe.
HODL Team
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