Spot Ether ETFs experienced a significant net outflow of $26.26 million during the previous week, from September 16 to September 20, 2024. The leading contributor to this outflow was Grayscale, with their ETHE ETF recording $46.38 million in outflows. However, Grayscale Mini Trust recorded a positive inflow of $7.94 million. BlackRock’s ETHA had the highest inflow among the ETFs, with $14.32 million. Bitwise reported a negative flow of $2.1 million, with no subsequent balance in later days.
In the last two days of the week, there were continuous inflows. BlackRock initiated a flow of $5.2 million, followed by Mini Trust with an inflow of $2.9 million. The cumulative historical flow as of September 20, 2024, Eastern Time (ET) reached $607.6 million.
BlackRock’s total inflow stood at $1.03 billion, while Grayscale’s outflow totaled $2.76 billion.
Despite these outflows, ETH saw a 2.71% increase to a value of $2,657.06. It also reflected a 16.14% increase in the last 7 days but a 3.56% decline in the last 30 days. The 24-hour trading volume experienced a significant surge of 52.88%. Short-term predictions suggest a 6.26% growth for ETH in the next 30 days, reaching $2,730.32. However, it is likely that the market will surpass this milestone sooner. The rate cut implemented by the Federal Reserve continues to impact the value of ETH and Spot Ether ETFs.
The Federal Reserve’s recent aggressive rate cuts, which exceeded expectations, have attracted some criticism. However, the benefits currently outweigh the limitations, with the anticipation of two more rate cuts by the end of 2024. This environment allows investors to invest in riskier assets and associated products, such as ETFs like the Spot Ether ETF and the Spot Bitcoin ETF.
Critics argue that the rate cut came too late and may indicate an approaching recession. Additionally, some believe the rate cut was influenced by a political agenda to favor Kamala Harris, the Democratic Presidential candidate.
Meanwhile, the crypto market and crypto-related products are thriving since the Federal Reserve’s rate cuts have increased borrowing power.
Comparatively, Spot Bitcoin ETFs performed well in terms of inflows. Bitcoin ETFs experienced inflows for four out of five days, with the only outflow occurring on September 18, 2024, for $52.7 million. On that same day, Mini Trust was the only ETF to demonstrate a positive flow of $2.7 million.
The success of Spot Ether ETFs has paved the way for other crypto ETFs to enter the market. Despite irregular flows, the crypto industry is eagerly anticipating the launch of an XRP ETF, followed by offerings of other tokens.