The US-based Spot Ethereum ETF (exchange traded fund) recorded outflows for the second consecutive week. This negative trend comes on the back of the second-largest cryptocurrency’s disappointing price performance in October. After months of heavy capital inflows, Ethereum ETFs appear to be undergoing a cooling-off period, with changes in investor sentiment also likely playing a role.
US Ethereum ETF loses $93.6 million
The U.S. Ethereum ETF market recorded total daily net outflows of $93.6 million on Friday, October 24, according to the latest market data. This negative closing price marks the third consecutive day of outflow of cryptocurrency-related investment products.
Interestingly, the only ETH exchange-traded fund to record negative outflows on the day was BlackRock’s iShares Ethereum Trust (ticker: ETHA). The largest Ethereum ETF by net worth lost nearly $101 million in value by the end of this week.
Meanwhile, the only other spot ETH exchange-traded fund that saw some trading activity on Friday was the Grayscale Ethereum Mini Trust (ticker ETH). Etherlink investment products saw capital inflows of $7.4 million, according to SoSoValue data.
Source: SoSoValue
This negative performance of $93.6 million further compounded a disappointing week for the US Ethereum ETF, extending its current outflow streak to a third consecutive day. Meanwhile, this daily performance set a weekly record for the ETF with total net outflows of approximately $243.9 million.
Even more concerning, this is the first consecutive weekly outflow for the Ethereum ETF since April, indicating a decline in investor appetite. Demand for exchange-traded funds (ETFs), which has been a very bright spot for Ethereum in recent weeks, now appears to be waning.
Ethereum price overview
It is difficult to separate the performance of the U.S. Ethereum ETF from the price fluctuations of the underlying asset. Last week’s performance can shine a spotlight on this direct relationship, as Ethereum’s price has struggled to rise over the past seven days.
This downturn is a general concern for the cryptocurrency market, but the situation appears to be even worse for large-cap stocks at the moment. Ethereum price, for example, has had a particularly hard time recovering and sustaining the psychological level of $4,000.
As of this writing, the price of ETH is around $3,950, reflecting an increase of 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
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