Ethereum ETFs register weekly outflows of $796 million
TL;DR Breakdown
- Ethereum ETFs posted five consecutive days of outflows to register a weekly outflow of $796 million.
- Analysts mentioned that the severe outflows affected the price of the asset, which dropped by 10%.
- Bitcoin ETFs also registered five consecutive days of outflows to register a weekly outflow of $897 million.
Spot Ethereum exchange-traded funds (ETFs) based in the United States have posted five consecutive days of net outflows, with the price of the asset dropping around 10% in the past week. According to data from Farside, spot Ethereum ETFs closed the trading week with $248 million in daily outflows, bringing the total outflows across the week to $795.8 million.
The last time spot Ethereum ETFs recorded five consecutive days of outflows was the trading week ending September 5, when the price of the asset traded around $4,300. According to crypto analyst Bitbull, the Ethereum ETF outflow streak shows a sign of capitulation as the panic selling has reached new highs. According to several previous reports, there has been little retail participation when it comes to ETH, a metric that has been proven by the negative net taker volume on Binance.
Ethereum ETFs register five consecutive daily outflows
According to reports, there is a persistent sell pressure on the asset, which comes as industry anticipation mounts over when the United States Securities and Exchange Commission will approve staking as part of the spot Ethereum ETFs. According to analysts, if the SEC gives their green light for the product, it could bring huge inflows of institutional money into Ethereum, giving Bitcoin ETFs a run for their money.
In addition, Nate Geraci, ETF analyst and NovaDius Wealth Management president, mentioned in a post on X that, given the fact that the SEC has recently acknowledged the Nasdaq’s application to add staking to BlackRock’s iShares Ethereum ETF, ETH ETF staking could be the next thing on their agenda. He added that he expects it to come before the SEC thinks about approving additional spot crypto ETFs of other digital assets.
On September 19, reports claimed that Grayscale was preparing to stake part of its significant Ethereum holdings, another development that signals confidence that the United States regulators may soon start looking into the approval of staking within exchange-traded products. The asset manager shifted 40,000 ETH, a move that experts and analysts said could make it the first US Ethereum ETF sponsor to test the agency’s clarity concerning staking rules.
Meanwhile, the price of Ethereum experienced a drop of 10% over the past seven days, trading around $4,011 at the time of writing, according to data from CoinMarketCap. The token is down from its year-to-date high of $4,920, and remains up by 190% above the low of $1,377 witnessed in April. The price of the asset pulled back this week amid reduced demand from American institutional investors and a rise in liquidation.
According to reports, the price of ETH slipped after suffering about $1.5 billion in liquidations during the week. These liquidations occurred after exchanges like Binance and OKX closed leveraged bullish trades as the price crash happened. There was also the contributing macro factor. Issues like the motive of the Federal Reserve concerning rates in the face of persistent inflation also added to the drop in its price.
Spot Bitcoin ETFs also posted net outflows of $897.6 million over the same period. It comes as the asset saw a decline of 5.28% over the past seven days, trading at $109,500 at the time of writing. ETF analyst James Seyffart mentioned in a podcast on Thursday that Bitcoin ETFs have not “been perfectly hot the past couple of months,” but still noted that “they are the biggest launch of all time.” Seyffart also added that Bitcoin ETFs are going “as good as you could possibly hope.”
