Grayscale Ethereum ETF Outflows Cross $2 Billion, More Pain Ahead?

The spot Ether ETF flows have remained volatile throughout this week with BlackRock and Grayscale dominating most of the flow activity. On Thursday, August 1, the total outflows from the Grayscale Ethereum ETF (ETHE) crossed over $2 billion within just eight trading sessions since its launch last week. As a result, the ETHE assets under management eroded by 22% standing just above $7 billion as of now.

Grayscale Ethereum ETF Outflows subside

The good thing is that the outflows from the Grayscale Ether ETF (ETHE) have been on a decline. On Thursday, August 1, ETHE net outflow stood at $78 million, thereby dropping under $100 million for the first time since inception. The Grayscale Ethereum mini-ETF (ETH) is compensating for some of the outflows, with more than $200 million in inflows so far.

A day before on Wednesday, the spot Ether ETF flows turned negative after the Federal Reserve kept interest rates unchanged citing the possibility of a September rate cut. However, it flipped into positive territory on Thursday, August 1.

Also Read: Bank of England Cuts Interest Rate First Time in 4-Years, Bitcoin Recovery Soon?

The spot Ethereum ETFs clocked net inflows of clocked inflows of $26 million yesterday. BlackRock Ether ETF (ETHA) saw inflows to the tune of $89.6471 million. As a result, BlackRock ETHA’s net inflows since inception have crossed $710 million. Fidelity’s FETH recorded minor inflows of around $11.4 million.

Ethereum Whale Activity Spikes With ETH Volatility

The Ethereum blockchain witnessed strong whale activity recently as the ETH price flirts around $3,165 levels.

Explaining the reason behind the recent ETH price drop, Lookonchain stated that three wallets associated with Elwood have collectively deposited a total of 19,500 ETH, valued at $64 million, on crypto exchange binance in the last two days. As per Lookonchain, these wallets have a history of depositing ethereum to Binance, just before the crash.

Who dumped $ETH causing the price to drop?

We noticed 3 wallets related to #Elwood deposited 19,500 $ETH($63.66M) to #Binance in the past 2 days!

Coincidentally, these wallets deposited $ETH to #Binance every time before the price crashed!https://t.co/ME12Up3BIL pic.twitter.com/9dEbivNWrZ

— Lookonchain (@lookonchain) August 1, 2024

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Furthermore, as per data from Greeks.Live, a total of 180,000 Ethereum options are set to expire today with a put-call ratio of 0.55, a notional value of $600 million, and a max pain point of $3,300.

Also Read: SHIB Burn Rate Rockets 2600% Fueling Recovery Speculations

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.