Key Points
- On December 19, US spot Ethereum ETFs experienced a net outflow of $60.47 million, ending an 18-day streak of positive inflows.
- This coincided with a broader downturn in the cryptocurrency market, with Ethereum’s price dropping over 9% in 24 hours.
On the 19th of December, there was a significant decline in the US spot Ethereum exchange-traded funds (ETFs) with net outflows totaling $60.47 million. This marked the termination of a continuous 18-day period of positive inflows.
Leading Players in the Outflow
The Grayscale Ethereum Trust (ETHE) was the major contributor to this negative trend, with an outflow of $58.13 million. Other notable players, such as Bitwise Ethereum ETF (ETHW), Invesco, and Grayscale’s mini ETFs, also recorded significant outflows, amounting to $12.28 million.
In contrast, BlackRock’s ETHA, which has net assets of $3.45 billion, reported no flows during the day. The same was true for Franklin’s EZET and 21Shares’ CETH. The only ETFs that saw positive inflows were Fidelity’s FETH and VanEck’s ETHV, which together secured a modest $10 million.
Despite this, spot Ether ETFs have collectively secured $2.4 billion in net positive flows since their inception in July. They gained popularity following a surge in Ethereum prices and the crypto-friendly victory of Donald Trump in the US elections. The past 18 days saw inflows of $1.27 billion as Ether’s price increased from $3,500 to surpass the strong $4,000 resistance. Interestingly, the Ethereum Foundation sold 100 ETH at this local peak.
Market Downturn
The outflows on Thursday coincided with a broader downturn in the cryptocurrency market. The Federal Reserve’s decision to cut interest rates for the third consecutive time in 2024 reignited inflation fears. This led to a sell-off in risk assets, causing the global crypto market cap to drop sharply from $3.7 trillion to $3.36 trillion.
Ethereum was not immune to this, with its price plummeting over 9% in the past 24 hours to $3,371. Its market cap also declined by 8.89%, now sitting at $404 billion. Ethereum’s Relative Strength Index (RSI) currently indicates a bearish outlook for the cryptocurrency, with a reading of 40 reflecting significant downward price pressure.
Despite the downturn, data from IntoTheBlock shows that 81% of Ethereum holders remain “in the money,” indicating their investments are still profitable at current prices. Meanwhile, 16% are at a loss, with the remaining 3% at breakeven.
The crypto fear and greed index remained steady at 74, signaling ongoing greed in the market. This suggests that investors are viewing the dip as a buying opportunity, raising hopes of a potential rebound as the holiday season approaches.
On the same day, US spot Bitcoin ETFs experienced their largest single-day outflows ever, with $680 million exiting these products. This ended a 15-day streak of positive flows. Bitcoin is currently trading around $96,600, down by 5% in the past day.
