U.S. Spot Ethereum ETFs See Largest Daily Outflows Since July, With $79M Withdrawn

U.S. spot Ethereum exchange-traded funds (ETFs) experienced significant net outflows of $79.21 million on Monday, marking the largest daily outflow since July 29.

The sharp decline was primarily driven by the Grayscale Ethereum Trust (ETHE), which alone accounted for $80.55 million in withdrawals.

This marked the fund’s largest outflow since July 31, as per data from Sosovalue.

Other ETH ETFs See Inflows

Notably, ETHE was the only spot Ethereum ETF to witness outflows on Monday.

Contrary to ETHE’s performance, Bitwise’s ETHW ETF recorded net inflows of $1.34 million, while the remaining seven spot Ethereum ETFs saw no change in their flows.

Despite the significant outflows from ETHE, the total trading volume for all nine Ethereum ETFs reached $167.35 million, up from $139.47 million on Friday.

In contrast, U.S. spot Bitcoin ETFs saw modest inflows of $4.56 million on Monday, continuing their three-day streak of positive flows.

On September 23, the total net outflow of Ethereum spot ETFs was $79.2097 million. Grayscale ETF ETHE had an outflow of $80.5542 million, and Bitwise ETF ETHW had a single-day inflow of $1.3445 million. https://t.co/Tvs2oCS03I

— Wu Blockchain (@WuBlockchain) September 24, 2024

Fidelity’s FBTC led the pack with $24.93 million in net inflows, followed by BlackRock’s IBIT, which recorded $11.54 million, and Grayscale’s Bitcoin Trust (GBTC), which logged $8.42 million in net inflows.

However, GBTC reported a notable $40.33 million in net outflows after two consecutive days of no activity.

The total trading volume for the 12 spot Bitcoin ETFs decreased to $949.72 million on Monday, down from $980.57 million on Friday.

As reported, digital asset investment products saw a turnaround last week, with inflows reaching $436 million following a prolonged period of outflows totaling $1.2 billion.

The reversal was influenced by shifting market expectations, particularly the potential for a 50-basis-point interest rate cut.

Bitcoin and Ethereum Poised for Strong Performance in October

Bitcoin and Ethereum are expected to see strong performances in October, according to Ryan Lee, Chief Analyst at Bitget Research.

After a challenging September, Bitcoin is forecasted to reach a price range between $58,000 and $72,000, driven by a combination of macroeconomic factors, market indicators, and institutional activity, Lee said in a comment.

The Federal Reserve’s recent decision to cut the federal funds rate by 50 basis points, lowering it to 4.75%-5%, “signals a formal shift in monetary policy,” he said.

This move, aimed at injecting liquidity into the market, has already led to a short-term rise in both the U.S. stock and crypto markets.

Lee believes that, following adjustments in the second and third quarters, Bitcoin now presents a favorable opportunity for accumulation.

September also saw several instances of negative funding rates in the Bitcoin futures market, caused primarily by spot market sell-offs that resulted in the liquidation of long futures positions.

Coupled with the Fear & Greed Index fluctuating around “Extreme Fear” throughout the month, historical data suggests a high probability of a rebound after such conditions.

For Ethereum, a similarly optimistic outlook is projected, with an expected price range between $2,200 and $3,400.

The Federal Reserve’s dovish stance on interest rates could make Ethereum an attractive “yield-generating” asset once rates align with ETH’s staking yield, which is around 3.5%.

Additionally, the upcoming launch of Eigenlayer, a major Ethereum ecosystem project, could attract significant market capital, further boosting ETH’s performance.

Moreover, the recent surge in popularity of Ethereum-based meme coins, like Neiro, has generated a strong wealth effect, drawing more users to buy ETH and engage in early-stage trading of these assets.