The post Grayscale in Trouble? Ethereum ETF Outflows Cause Market Volatility appeared first on Coinpedia Fintech News

Despite Grayscale’s Ethereum Trust experiencing cumulative outflows exceeding $2 billion, daily net inflows into U.S. spot Ethereum ETFs have turned positive. Many crypto analysts believe that Ethereum ETF will soon follow the Bitcoin path.

Here’s what you need to know.

Spot Ethereum ETFs: Mixed Activity

Spot Ether ETF flows have been erratic this week, with BlackRock and Grayscale leading the activity. On August 1, spot Ethereum ETFs saw a net inflow of $26.7 million, largely driven by an $89.6 million inflow into BlackRock’s iShares Ethereum Trust (ETHA) as per market data.

Unlike Grayscale’s ETF, BlackRock’s ETHA has shown strong performance, with $89 million in inflows over the past 24 hours. This has pushed ETHA’s total net inflows to over $710 million since its launch. Fidelity’s FETH also saw minor inflows of $11.4 million, adding to the overall positive trend in Ethereum ETF investments.

Grayscale’s Decline: A Chance for Ethereum?

With Grayscale’s ETF outflows decreasing, Ethereum might now have an opportunity to attract early investors. Recently, Ethereum has seen increased whale activity. Lookonchain reported that three wallets linked to Elwood deposited 19,500 ETH, worth around $64 million, into Binance over the past two days. Such large movements are believed to affect recent ETH price fluctuations.

Moreover, today’s expiration of Ethereum options, involving $600 million in contracts, adds another layer of uncertainty. With a put-call ratio of 0.55 and a max pain point of $3,300, the market will likely experience further volatility as traders adjust their positions based on these large-scale expirations.

Analysts’ Predictions: What’s Next for ETH?

In response to the recent sensitivity, analysts like Steno Research’s Mads Eberhardt anticipate that the outflows from Grayscale will slow, potentially driving up ETH prices. At the same time, Kaiko’s Will Cai noted that ETH’s price remains sensitive to ETF inflows. 

On the positive side, strong support in July suggests that buyers are eager, potentially pushing Ethereum prices up to $4,500. Currently, Ethereum is trading at about $3,165.

With the Ethereum ETF market gaining momentum, could it soon rival Bitcoin’s dominance?

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