Grayscale’s ETH ETF sees $1.7B outflows but analysts predict a reversal soon, potentially boosting ETH prices. Could this signal a bullish trend for Ether?
Grayscale’s recently converted Ether ETF has experienced significant outflows, totaling $1.7 billion. However, analysts predict this trend will reverse soon, potentially leading to an increase in Ether prices.
Key Points:
Massive Outflows:
Grayscale Ethereum Trust (ETHE) has seen over $1.7 billion in outflows since its conversion to an ETF on July 24.
This accounts for nearly 18% of its initial $9 billion asset under management (AUM).
Current Trends:
Ether ETFs have faced net outflows for four consecutive days, with $98 million on July 29.
Other ETH ETFs, such as BlackRock’s iShares Ethereum Trust and Bitwise Ethereum ETF, have posted positive inflows.
Analyst Predictions:
Mads Eberhardt from Steno Research believes the outflows will peak and subside by the end of the week, similar to the trend seen with Grayscale’s Bitcoin ETF.
Comparisons to Bitcoin ETF outflows suggest a potential bullish trend for Ether once outflows stabilize.
Market Sentiment:
Despite current outflows, there is strong institutional demand for ETH exposure.
BlackRock’s investment chief, Samara Cohen, notes that crypto-based ETFs will be integrated into model portfolios by the end of 2024.
While Grayscale's Ether ETF has experienced substantial outflows, analysts anticipate a reversal in this trend. If history repeats itself, Ether could see a significant price increase, driven by renewed investor confidence and strong institutional demand.
Source: Cointelegraph
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