ethereum’s price action has been a major source of concern for investors over the past few weeks as it persists in a downward trend. What makes the token’s struggles even more worrying is that it has shown no signs of easing despite the recent launch of eth spot ETFs (exchange-traded funds) in the United States.
However, it seems that the disappointing performance of eth ETFs (so far) might even be contributing to ethereum’s price woes in recent weeks. Specifically, Grayscale has been seeing a significant influx of capital leaving its Ether fund, the Grayscale ethereum Trust (ETHE).
Grayscale ethereum Trust Reaches $2.1 Billion in Outflows
Following the first full week of trading, the US ethereum ETF spot market saw a significant outflow of funds from crypto products. According to data from SoSoValue, a total of $169.35 million left eth exchange-traded funds over the past week.
While this figure still represents a significant amount of outflows from ethereum spot funds, it is more than 50% lower than the outflow seen in the debut week. In the debut week, the eth ETF market saw a net outflow of over $341 million.
The main 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 of its launch.
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Grayscale ethereum Trust (ETHE) | Source: eth" target="_blank" rel="noopener nofollow">SoSoValue
On Friday, August 2, 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 under $6 billion.
Similar to when bitcoin spot ETFs were launched, Grayscale’s ETHE holders appear to be reclaiming their shares from the fund, after years of not being able to do so. And, as seen with btc, the massive outflows appear to be putting considerable downward pressure on the price of ethereum.
ethereum Price Overview
At the time of writing, ethereum is trading at around $2,907, reflecting a 2.2% drop in value over the past 24 hours. According to data from CoinGecko, the cryptocurrency has fallen by more than 10% over the past seven days.
This performance over the past seven days highlights the struggles that the eth token has had in recent weeks. Data from CoinGecko shows that the price of ethereum has fallen by almost 8% over the past month.
However, Ether maintains its position as the second-largest cryptocurrency in the sector, with a market capitalization of over $347 billion.
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The ethereum price on the daily timeframe | Source: ETHUSDT chart on x/fkWoC71q/" target="_blank" rel="noopener nofollow">TradingView
Featured image from iStock, chart from TradingView
