U.S.-based spot Ethereum exchange-traded funds (ETFs) recorded a second consecutive week of capital outflows. This negative trend follows what was a disappointing price performance for the second-largest cryptocurrency in October. After months of significant capital inflows, Ethereum ETFs appear to be in a period of reflection, with a shift in investor sentiment also appearing to be in play.
U.S. Ethereum ETFs Post $93.6 Million Outflow
According to the latest market data, the US Ethereum ETF market recorded a total daily net outflow of $93.6 million on Friday, October 24. This negative closing performance marked the third consecutive day of outflows for crypto-related investment products.
Interestingly, BlackRock’s iShares Ethereum Trust (with the symbol ETHA) was the only ETH exchange-traded fund to see a negative outflow that day. The largest Ethereum ETF by net assets lost nearly $101 million in value to close out the week.
Meanwhile, Grayscale Ethereum Mini Trust (with ticker ETH) was the only other ETH spot exchange-traded fund to see trading activity on Friday. Data from SoSoValue shows that the Ether-related investment product saw a capital inflow of $7.4 million.
Source: SoSoValue
This negative performance of $93.6 million compounded what had been a disappointing week for US Ethereum ETFs, bringing the current outing streak to three consecutive days. At the same time, this daily performance brought the ETF’s weekly record to approximately $243.9 million in total net outflows.
What is more worrying is that this is the second consecutive weekly outflow for Ethereum ETFs for the first time since April, signaling a reduction in investor appetite. Demand for exchange-traded funds, which has been a bright spot for Ethereum in recent weeks, now appears to be waning.
Ethereum Price Overview
It is difficult to separate the performance of US Ethereum ETFs from the price movement of the underlying asset. This direct relationship can be highlighted by last week’s performance, as Ethereum price struggled to get going over the past seven days.
Although this gloomy situation is a general concern for the crypto market, the situation for large-cap assets seems to be getting worse at the moment. The price of Ethereum, for example, has particularly struggled to recover and stay above the psychological $4,000 level.
At the time of writing, the ETH price stands at around $3,950, reflecting a rise of just 0.7% over the past 24 hours.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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