Ethereum News Today: Investor Shift Fuels Ethereum ETFs Over Bitcoin Despite Price Slump

Spot Ethereum (ETH) exchange-traded funds (ETFs) recorded $196.7 million in outflows on Monday, marking the second-largest daily outflows since their launch, according to SoSoValue. This came after a $59 million outflow on Friday, totaling $256 million in outflows over two days. The outflows stand in contrast to a previous streak of $3.7 billion in inflows over eight trading days, during which single-day inflows exceeded $1 billion. BlackRock’s iShares Ethereum Trust ETF (ETHA) was among the hardest hit, with $87 million in outflows, while Fidelity’s Ethereum Fund (FETH) reported $79 million in outflows. ETHA currently holds approximately 3.6 million ETH, valued at $15.6 billion as of Monday, down from $15.8 billion on Friday, due to a 1.5% decline in ETH’s dollar value.

The ETH price has fallen around 6.5% in the past week, according to CoinGecko. Meanwhile, the Ethereum unstaking queue has reached record levels, with over 910,000 ETH, valued at around $3.9 billion, pending withdrawal by validators as of Tuesday. ValidatorQueue data shows that the unstaking process now takes at least 15 days and 14 hours. Analysts warn that the growing unstaking queue could lead to an "unstakening" effect, a potential destabilizing force in the ETH market. Prominent crypto commentator Samson Mow highlighted these concerns, suggesting that ETH’s price relative to Bitcoin (BTC) could drop to “0.03 or lower.” At the time of writing, ETH traded at 0.036 BTC.

Despite the recent outflows, Ethereum ETFs continue to attract more inflows than Bitcoin ETFs. Hildobby, a data analyst at Dragonfly, noted that as of Monday, 6.4% of the total BTC supply was held in BTC ETFs, while ETH ETFs held 5% of the total ETH supply. If the current trend continues, ETH ETFs could surpass BTC ETFs in market share by September. Additionally, last week’s inflows into Ethereum-based ETPs totaled $2.9 billion, compared to $552 million for Bitcoin ETPs, according to CoinShares. This shift reflects a broader investor preference for ETH over BTC.

Ethereum’s inflows have been supported by growing network activity, with the token maintaining a 68% market dominance in decentralized finance (DeFi) and a total value locked (TVL) of $203 billion. The number of Ethereum-related addresses has also risen sharply, with 2.6 million now active. Moreover, Ethereum-based stablecoin supply increased by 10% over the past 30 days to $144 billion. These metrics underscore the platform’s ongoing adoption and utility across various sectors of the crypto ecosystem. The Ethereum ETF inflow trend has been further reinforced by strong trading volumes, with spot Ethereum ETFs generating $17 billion in weekly trading volume, a record according to Bloomberg analyst Eric Balchunas.

The latest ETH price correction has drawn attention to technical indicators that suggest a potential rebound. A cup-and-handle pattern has formed on the ETH price chart, with a projected price target of $6,840 if the pattern completes. In the short term, however, the price is expected to retest support at $4,110 before resuming a bullish trajectory. Analysts remain cautiously optimistic about Ethereum’s long-term prospects, citing its robust fundamentals and expanding ecosystem. The ETF inflow streak, while shorter than previous months, remains significant, with $3.7 billion added to Ethereum ETFs in the latest eight-day period. This marks a continuation of Ethereum’s strong performance in the crypto investment space.

Source:

[1] Spot Ether ETFs See $197M Outflows, Second-Largest Ever (https://cointelegraph.com/news/ether-etfs-197m-outflows-second-largest)

[2] Crypto Funds Post $3.75B Inflows Driven By Ether ETFs (https://cointelegraph.com/news/crypto-funds-inflows-3-75-billion-ether-etf-trading-volume-record)

[3] Ethereum Eyes Surge as 14-Week ETF Accumulation Continues (https://crypto.news/ethereum-eyes-surge-14-week-etf-accumulation-continues/)