Spot Ethereum ETFs Exhibit Similar Trend To Spot Bitcoin ETFs, Market Expert Observes

The
historical

Spot
Ethereum
Exchange-Traded
Funds
(ETFs)

are
currently
seeing
a
negative
sentiment,
which
is
believed
to
be
mimicking
the
negative
trend
seen
with
that
of
the
Spot
Bitcoin
ETFs
on
BTC’s
price
following
its
inception
in
January
of
this
year.

Their
respective
ETFs
have
seen
decreased
inflows
and
deteriorating
performance,
closely
mirroring
each
other
as
the
two
most
popular
cryptocurrencies
face
downward
pressure.

Spot
Ethereum
ETFs
Face
Notable
Challenge

According

to
analysts
at
the
Woo
X
research
platform,
spot
Ethereum
ETFs
are
in
a
similar
downward
trend
to
Bitcoin,
indicating
the
general
bearishness
of
the
market.
After
the
inception
of
the
ETH
spot
ETFs
on
July
23,
Woo
X
highlighted
that
the
crypto
asset
saw
an
11%
reduction
in
price,
falling
from
$3,500
to
a
low
of
about
$3,100
simultaneously
in
just
three
days.

In
addition
to
the
present
unfavorable
market
conditions,
the
analysts
at
the
firm
state
that
the
ETH
spot
ETFs
are
confronting
an
obstacle
akin
to
the
one
that
BTC
had
previously
faced,
citing
the
selling
pressure
from
the
largest
asset
management
company,

Grayscale.

The
platform
noted
that
post
the
launch
of
the

Bitcoin
spot
ETFs,
BTC
also
experienced
a
20%
price
drop,
falling
from
about
$48,000
to
$38,000
in
over
two
weeks
due
to
the
selling
pressure
from
Grayscale’s
BTC
ETF,
GBTC. 

However,
the
price
later
surged
from
the
$38,000
price
level
to
a
historic
high
of
$73,000
as
Grayscale’s

GBTC

selling
pressure
reduced,
and
the
net
capital
flowing
into
the
funds
continued
to
rise.

In
the
event
that
Ethereum
witnesses
a
similar
circumstance,
Woo
X
believes
the
price
of

ETH

could
hit
the
$2,850
mark.
Meanwhile,
the
precise
effect
will
be
determined
by
the
selling
pressure
exerted
by
Grayscale
and
the
net
inflows
of
the
spot
ETH
ETFs
generally.

ETH
Spot
ETFs
Attract
Negative
Inflows

Investors’
interest
around
the
spot
Ethereum
ETFs
seems
to
have
dived
down
as
the
funds
after
Tuesday’s
trading
recorded
a
negative
outflow,
with
millions
of
dollars
seen
flowing
out
from
the
products.

According
to

data

from
the
London-based
investment
management
company
Farside
Investors,
the
products
saw
an
overall
outflow
of
$47
million.
Fidelity
ETH
ETF
(FETH)
was
the
only
fund
that
closed
the
market
on
a
positive
note,
attracting
about
$4.9
million
daily
inflows. 

Other
asset
management
firms
funds
like

Blackrock‘s
Ethereum
ETF
(ETHA),
Bitwise
ETH
ETF
(ETHW),
21Shares
ETH
ETF
(CETH),
VanEck
ETH
ETF
(ETHV),
and
Franklin
ETH
ETF
(EZET)
closed
the
market
on
a
negative
note
with
zero
inflows.
Meanwhile,

Grayscale
ETH
ETF
(ETHE)

saw
another
day
of
outflows
reaching
about
$52.3
million.

This
outflow
suggests
that
investors
are
withdrawing
from
the
products
due
to
the
recent
price
movement
of
ETH
and
the
general
market
fluctuations,
reflecting
a
cautious
approach
as
they
reassess
their
exposure
to
the
altcoin.

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image
from
Unsplash,
chart
from
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