Altcoin
Nate Geraci Calls Spot Ether ETFs A Success Despite Outflows, Here’s Why
The spot Ether ETFs went live this week but have seen consecutive net outflows in the past three days of trading. thanks to the Grayscale Ethereum ETF (ETHE) which has recorded more than $1.5 billion in outflows in the first four days. However, despite this, some market analysts have called the ETF launch a success.
Nate Geraci Calls Ether ETF Launch A Success
Despite the Ether ETFs seeing net outflows throughout this week, ETH Store President Nate Geraci calls it a success. He said that excluding the Grayscale Ethereum ETF (ETHE), $1 billion has flown into other ETF products this week. Although some investments have been recycled, Geraci believes that this was not the primary driver.
With investors gaining $1 billion of exposure through the traditional investment ETF channel, Geraci terms it a major success.
Ex-ETHE, well over $1bil came into spot eth ETFs this week…
A portion was clearly recycled from ETHE, but nowhere close to primary driver IMO.
Think highly successful debut.
Another way to think of this is investors wanted $1+bil eth exposure via tradfi rails.
In *4* days.
— Nate Geraci (@NateGeraci) July 27, 2024
Apart from ETHE, all other Ether ETFs have registered net inflows. For e.g. the BlackRock Ethereum ETF (ETHA) saw $442 million in flows as per data from Farside Investors. On the other hand, Bitwise ETHW came second with $265 million in inflows. Earlier this week, Bitwise also announced that they would be distributing 10% of their profits for Ethereum development activity. On Friday, ETH saw $16 million in inflows.
Also Read: Bitwise Ether ETF Reveals 10% Profit Donation To Ethereum Developers
Ethereum Price Sees Volatility
The Ethereum price has seen strong volatility this week amid the launch of the Ether ETFs. Earlier this week, the ETH price tanked all the way to $3,150 levels. However, it has partially recovered from the weekly bottom and is currently trading at $3,265. The altcoin has been mimicking Bitcoin post the Bitcoin ETF launch.
The launch of Ethereum ETF has been a sell-the-news event with analysts expecting a few more weeks of consolidation before resuming the bull journey ahead. Popular crypto analyst Michael van de Poppe predicts believe that the ETH price could double from here by the end of the year.
It’s interesting, isn’t it? In the past years, we’ve seen the second half of the year where #Altcoins accelerated massively.
In the first half of the year: downwards only.
The second half of 2024 is going to push $ETH to $7,000. Be ready. pic.twitter.com/0GY0imzqRQ
— Michaël van de Poppe (@CryptoMichNL) July 27, 2024
Also Read: Nomura to Launch High-Yield Ether ETF Featuring Staking Options
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.
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