Ether price drops nearly 4% as Ethereum spot ETF outflows hit $77 million

The nine U.S. ethereum spot ETFs recorded net outflows totaling $77.21 million on Wednesday, reversing the positive trend from the previous day.

The outflows come as the price of Ether is teetering below $3,200.

Ether spot ETF outflow continues

The Grayscale ethereum Trust (ETHE) recorded net outflows of $133.33 million on July 31, according to SosoValue eth-spot” target=”_blank” rel=”noopener” data-wpel-link=”external”>dataSince becoming an ETF, ETHE has lost nearly $2 billion in outflows so far.

Elsewhere, the Grayscale ethereum Mini Trust (eth) continued to maintain a streak of inflows for seven consecutive days. It attracted $19.5 million on the closing day of July, bringing its total net inflows to over $200 million.

Fidelity’s FETH followed suit with $18.8 million in inflows, while BlackRock’s ETHA and VanEck’s ETHV saw inflows of $4.98 million and $4.81 million, respectively. Bitwise’s ETHW saw $4.71 million in inflows, and 21Shares’ CETH saw $3.38 million over the same period.

Meanwhile, Franklin Templeton’s EZET and Invesco’s QETH saw no flows during the day.

The latest outflows come just a day after ethereum spot ETFs saw net inflows for the second time in their existence. However, the $33.7 million inflows failed to provide a significant boost to Ether prices, which QCP Capital says have been underperforming compared to bitcoin over the past month.

Institutional interest

At the time of writing, Ether was trading near $3,188, down 4% from the previous day. For the price to gain traction, the leading altcoin needs increased institutional interest. However, experts have yet to see such a trend. In fact, MV Capital partner Tom Dunleavy x.com/dunleavy89/status/1818330930261500039″ target=”_blank” rel=”noopener” data-wpel-link=”external”>believe August is likely to continue to be a month of net outflows from ethereum spot ETFs.

“We are likely to continue to see net outflows from eth ETFs in August. GBTC accounts for roughly 20% of the btc ETF dollar amount. If ETHE follows the same path of $2B in AUM, down from the current $7B. With $1B or so per week in eth outflows, we should settle into a new steady state for eth by the end of August.

Last month, Binance CEO Richard Teng also echoed a similar sentiment when he said that a steady deployment of capital into these ETFs is anticipated. In a statement to CryptopotatoHowever, Teng added that the funding is unlikely to be dramatic initially and will instead depend on various macroeconomic factors.

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