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Author: Tom Mitchelhill, CoinTelegraph; Compilation: Whitewater, Bitchain Vision
An analyst saidGrayscale’s recent convertible Ethereum ETF – Grayscale Ethereum Trust (ETHE) – should fade before the end of this week, causing ETH prices to rise.
Mads Eberhardt, senior analyst at Steno Research, said in a July 30 post to X that a large amount of money outflow from Grayscale ETHE is “probably” going to fade this week.His remarks come as Ethereum ETF has been out for the fourth consecutive day, with capital outflows reaching $98 million.
Source: Mads Eberhardt
ETHE has exceeded $1.7 billion in outflows since the conversion.That number accounts for nearly 18% of the $9 billion that ETHE initially included before it converted to an ETF on July 24.
Although the inflows of funds of the other eight ETH ETFs continued to be positive, this figure caused Ethereum ETFs to fail to achieve net inflows for four consecutive days.
BlackRock’s spot ETH fund has the largest cumulative inflows at $500 million, Bitwise’s fund inflows at $276 million, with Fidelity ranked third with net inflows at $244 million.
Ethereum ETF has experienced capital outflows for four consecutive days.Source: FarSide Investors
However, Eberhardt believes thatThe early strong outflow is the reason for the short-term bullish.
“The outflows of Grayscale Bitcoin ETFs dropped sharply after the 11th trading day,” he said.
“Because the outflow of Grayscale Ethereum ETFs is much higher relative to AUM, we believe peak outflows will occur sometime this week.”
“So, what happens once we get through these peaks of Grayscale outflows? Guess,” Eberhardt wrote in X’s follow-up post.
Anonymous trader Evanss6 side by side compares the launch of Bitcoin ETFs and Ethereum ETFs in a July 30 X post, echoing Eberhardt’s point of view.
Evan wrote that the outflow of Bitcoin ETF bottomed out on the seventh trading day, while the bottom occurred when the cumulative outflow of Grayscale Bitcoin Trust (GBTC) reached 13.2% of the original fund.
He added that Bitcoin continued to “slump [about] 92% in 50 days” after GBTC outflows bottomed out.
By contrast, he noted that Grayscale’s Ether ETF “selled much faster than GBTC”, reaching 17.3% in just four days, when ETH price had a smaller overall pullback relative to BTC.
Meanwhile, Samara Cohen, head of BlackRock ETFs and Index Investments, said strong demand for ETH from institutional investors, adding that by the end of the year, crypto-based ETFs will begin to enter the “model portfolio.”
“Investors really want to gain ETH exposure, especially if they are going to use it in the overall portfolio of their ecosystem that they have confidence in,” she said.
