Grayscale ETH ETF Outflows Hit $2 Billion As Ethereum Price Struggles Below $3,000

The
Ethereum
price
performance
has
been
a
major
source
of
concern
for
investors
over
the
past
few
weeks,
persisting
in
a
downward
trend.
What
makes
the
token’s
struggles
even
more
worrying
is
that
it
has
not
shown
any
signs
of
relief
despite
the
recent
launch
of
spot
ETH
ETFs
(exchange-traded
funds)
in
the
United
States.

However,
it
appears
that
the
underwhelming
performance
of
the
ETH
ETFs
—
so
far
—
might
even
be
contributing
to
the
Ethereum
price
troubles
in
recent
weeks.
Specifically,
Grayscale
has
been
seeing
a
significant
flow
of
capital
out
of
its
Ether
fund,
the
Grayscale
Ethereum
Trust
(ETHE).

Grayscale
Ethereum
Trust
Hits
$2.1
Billion
In
Outflows

Following
the
first
full
week
of
trading,
the
US
spot
Ethereum
ETF
market
saw
a
significant
outflow
of
funds
from
the
crypto
products.
According
to
data
from
SoSoValue,
a
total
of
$169.35
million
flowed
out
of
the
ETH
exchange-traded
funds
in
the
past
week.

While
this
value
still
represents
a
significant
amount
of
outflow
from
the
spot
Ethereum
funds,
it
is
more
than
50%
lower
than
the
outflow
witnessed
in
the
debut
week.
In
the
debut
week,
the
ETH
ETF
market
saw
a
net
outflow
of
more
than
$341
million.

The
primary
fund
responsible
for
this
level
of
capital
outflow
is
the
Grayscale
Ethereum
Trust,
which
has
seen
a
withdrawal
of
over
$2.1
billion
in
the
past
two
weeks.
ETHE
witnessed
a
net
outflow
of
over
$1.5
billion
in
the
week
it
launched.

Grayscale Ethereum Trust (ETHE) | Source: SoSoValue

On
Friday,
August
2,
the
Grayscale
Ethereum
Trust
saw
a
total
outflow
of
$61.43
million,
according
to
data
from
SoSoValue.
This
latest
fund
movement
brings
the
total
net
asset
value
of
ETHE
to
just
a
little
under
$6
billion.

Similarly
to
when
the
spot
Bitcoin
ETFs
launched,
holders
of
Grayscale’s
ETHE
seem
to
be
redeeming
their
shares
from
the
fund,
having
been
unable
to
do
so
for
years.
And
as
seen
with
BTC,
the
massive
outflows
seem
to
be
putting
a
decent
amount
of
downward
pressure
on
the
Ethereum
price.

Ethereum
Price
Overview

As
of
this
writing,
the
Ethereum
price
stands
at
around
$2,907,
reflecting
a
2.2%
decline
in
value
in
the
past
24
hours.
According
to
data
from
CoinGecko,
the
cryptocurrency
is
down
by
more
than
10%
in
the
last
seven
days.

This
last
seven-day
performance
underscores
the
ETH
token’s
struggles
in
the
past
few
weeks.
Data
from
CoinGecko
shows
that
the
Ethereum
price
has
fallen
by
nearly
8%
in
the
past
month.

Nevertheless,
Ether
maintains
its
position
as
the
second-largest
cryptocurrency
in
the
sector,
with
a
market
cap
of
over
$347
billion.

The Ethereum price on the daily timeframe | Source: ETHUSDT chart on TradingView 

Featured
image
from
iStock,
chart
from
TradingView