Spot Ethereum ETFs experienced a rollercoaster week, marked by both significant inflows and outflows, reflecting mixed market sentiment. By the week’s end, these ETFs recorded a net inflow of nearly $105 million, sparking discussions about Ethereum’s (ETH) potential move toward the $3,000 mark.
Weekly Overview of Spot Ethereum ETF Flows
The week started strong on Monday, August 5, with spot Ethereum ETFs seeing net inflows of $48.8 million. BlackRock led the way, securing $47.1 million of these investments. Fidelity and VanEck followed with inflows of $16.2 million and $16.6 million, respectively.
However, not all was positive. Grayscale’s Ethereum Trust (ETHE) experienced significant outflows of $46.8 million, although its smaller Ethereum ETF managed to draw in $7.6 million. This created a mixed market sentiment early in the week.
Tuesday, August 6, continued the positive momentum as Ether ETFs recorded $98.4 million in inflows. BlackRock once again dominated, attracting $109.9 million. Fidelity also performed well, securing $22.5 million in new investments. Yet, Grayscale’s ETHE struggled with $39.7 million in outflows, showing that caution still lingered among investors.
Midweek Shift: Outflows Begin
By midweek, the trend shifted. Wednesday, August 7, saw a total net outflow of $23.7 million for spot Ethereum ETFs. Grayscale’s ETHE faced $31.9 million in outflows, overshadowing a modest inflow of $4.7 million into Fidelity’s ETH ETF. This marked a turning point, highlighting the volatility in the market.
On Thursday, August 8, the outflow trend continued, though at a slower pace. The total net outflow for Ether ETFs was $2.9 million, with Grayscale’s ETHE leading the outflows at $19.8 million. In contrast, its smaller Ethereum ETF attracted $5 million in new investments. BlackRock’s ETH ETF also saw positive inflows of $11.7 million, partially balancing the overall outflows.
End-of-Week Recap: Mixed Sentiment Prevails
The week wrapped up on Friday, August 9, with spot Ethereum ETFs recording a net outflow of $15.8 million. Despite this, the overall weekly inflow remained positive at $104.8 million, thanks to BlackRock’s $19.6 million contribution. Fidelity’s FETH saw a smaller inflow of $3.9 million, while Grayscale’s ETHE continued to face heavy outflows, losing $41.7 million. This brought ETHE’s cumulative historical net outflows to a staggering $2.29 billion.
Will Ethereum Surge to $3,000?
Despite the mixed performance of spot Ethereum ETFs, Ethereum’s price remained relatively stable, fluctuating between $2,300 and $2,650 throughout the week. Analysts from QCP Capital noted a fundamental shift in the liquidity profiles of Bitcoin (BTC) and Ethereum. While Bitcoin is increasingly viewed as “digital gold,” Ethereum seems to be losing some of its appeal as a speculative asset.
This shift became evident on August 5, when ETH saw a 22% drop in value, compared to a 16% decline in BTC. The growing gap in implied volatility between BTC and ETH, expanding from 5% to 20% since the introduction of spot Ethereum ETFs, suggests that investors are adjusting their strategies.
As Ethereum hovers around the $2,600 level, bulls may attempt to push the price toward $3,000. However, technical indicators, including a potential death cross between the 50-day and 200-day exponential moving averages (EMAs), hint at increasing selling pressure, which could drive ETH’s price down to $1,830.
