The U.S.-based spot Ethereum ETF (exchange-traded fund) recorded capital outflow for the second week in a row. This negative trend is driven by the disappointing price performance of the second-largest cryptocurrency in October. After several months of significant capital inflows, the Ethereum ETF appears to be in a cooling off period, with changes in investor sentiment also appearing to be at play.
US Ethereum ETF outflows $93.6 million
According to the latest market data, the US Ethereum ETF market saw total daily net outflows of $93.6 million on Friday, October 24th. This negative closing performance marked the third straight day of outflows for cryptocurrency-linked investment products.
Interestingly, BlackRock's iShares Ethereum Trust (with ticker ETHA) was the only ETH exchange-traded fund to record negative outflows on the day. The largest Ethereum ETF by net assets lost nearly $101 million in value to end the week.
Meanwhile, the Grayscale Ethereum Mini Trust (with ETH ticker) was the only spot ETH exchange-traded fund to see trading activity on Friday. Ethereum-linked investment products witnessed capital inflows of $7.4 million, according to data from SoSoValue.
Source: SoSoValue
This $93.6 million negative performance further worsened a disappointing week for the US Ethereum ETF, with outflows now reaching a third straight day. Meanwhile, this daily performance brought the ETF's weekly record total net outflows to approximately $243.9 million.
What's more worrying is that this is the second consecutive week of outflows for the Ethereum ETF, the first since April, which has dampened investor appetite. Demand for exchange-traded funds, which have been quite bright on Ethereum in recent weeks, now appears to be waning.
Ethereum price overview
It is difficult to separate the performance of the US Ethereum ETF from the price action of the underlying asset. This direct relationship may be highlighted by last week's performance, as the price of Ethereum has struggled to rise over the past seven days.
This lackluster situation has been a general concern in the cryptocurrency market, but for now, the situation appears to have worsened for large assets. For example, the price of Ethereum has had a particularly difficult time recovering and maintaining above the psychological level of $4,000.
As of this writing, the price of ETH is around $3,950, up just 0.7% over the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, and each page is diligently reviewed by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
