After being unexpectedly approved by the US Securities and Exchange Commission (SEC), spot Ethereum ETFs have become a significant topic in the cryptocurrency world. However, these crypto investment products seem to have had a lackluster start to trading in the past week.
Grayscale Sees Heavy Outflows from Spot Ethereum ETFs
The spot Ethereum ETFs, launched on July 23, saw notable outflows over the first week, totaling a net outflow of approximately $341 million. The launch day saw a positive start with around $106.8 million in net inflows, which was considered a good beginning. However, the following days saw significant outflows, with over $133 million on Wednesday, $152 million on Thursday, and $162 million on Friday.
Grayscale’s ETH Trust ETF ETHE notably contributed to the outflows, with a single-day outflow of over $356 million on Friday. Since the launch of spot Ethereum ETFs, this Grayscale product has seen a cumulative net inflow of $1.51 billion.
The price of Ethereum has faced challenges post the Ether ETFs launch, seeing a decline of over 7% in value in the last week. Currently, the ETH price hovers around $3,248 with a 1.1% decrease in the past day.
New Money Impact on ETH Appears Weaker Than on Bitcoin
A recent report from CryptoQuant suggests that new capital inflows, like ETFs, have a lesser impact on Ethereum compared to Bitcoin. Their metric, the “realized capitalization multiplier,” indicates that each dollar invested in Bitcoin could increase its market cap by $5, while for Ethereum, it would only lead to a $1.3 increase.
In 2024, every $1 invested in #Bitcoin increased its market cap by $5, while for ETH, it was only $1.3.
New money flows have a weaker effect on $ETH than Bitcoin. pic.twitter.com/CtAmmMVL8g
— CryptoQuant.com (@cryptoquant_com) July 26, 2024
