Ethereum Selling Frenzy Nears Its End as ETH Outflows Plummet by 80
Ethereum (ETH) has seen a notable decline of nearly 15% since the debut of exchange-traded funds (ETFs) on July 23. Grayscale’s Trust (ETHE) experienced outflows exceeding $2 billion, exerting significant selling pressure that may now be nearing its conclusion.
Grayscale, a prominent manager of cryptocurrency assets, currently offers two Ethereum spot ETFs: ETHE and the Mini Trust (ETH). ETHE, however, has faced substantial sell-offs due to its comparatively higher fees vis-à-vis its competitors, which are gaining momentum.
Notably, Arkham Intelligence reported a substantial 80% reduction in ETHE outflows during the week, indicating that “the selling is almost over.” Their report highlighted an outflow of 108,800 ETH on Monday, contrasting sharply with 24,900 ETH on Friday.
Analysts observe that despite the heavy selling from Grayscale, other funds have been actively purchasing Ethereum’s native token. Specifically, Grayscale’s ETHE recorded $2.12 billion in outflows, whereas the other eight trusts collectively saw $1.60 billion in inflows. BlackRock’s iShare Ethereum Trust (ETHA) led with over $700 million in net inflows, followed by Fidelity (FETH) and Bitwise (ETHW) with $297.10 million and $287.90 million, respectively.
The significant sell-off by Grayscale resulted in a negative net inflow of $511.20 million, despite robust buying activity from other funds investing in Ethereum.
Currently, ETH is trading at $2,986, testing crucial support levels for the year, yet still showing a 31% increase year-to-date. This strong performance has attracted both institutional and retail investors to the Ethereum ecosystem, eagerly anticipating a potential upward breakout.
Investors bullish on Ethereum have shown optimism, accumulating substantial amounts of the token, according to reports from Finbold. The recent selling pressure from Grayscale may have had a notable impact on Ethereum’s price. Thus, the potential cessation of this pressure could bode well for Ethereum, possibly catalyzing the anticipated bullish trend.
Disclaimer: The information provided should not be construed as investment advice. All investments carry risks, and individuals should exercise caution when investing.
