Ethereum Price Declines 12% Amid Significant Spot ETF Outflows
The Ethereum price has recently struggled to keep up with other large-cap cryptocurrencies, experiencing a decline of over 12% in value last week. This drop has been linked to the US Federal Reserve rate cut and poor performance from spot ETH exchange-traded funds (ETFs), which are losing investor interest after a period of positive inflows.
Spot ETH ETFs Snap 18-Day Positive Inflows Streak
Data from SoSoValue indicates that US-based spot Ethereum ETFs recorded a net outflow of $75.11 million on December 20, marking the first instance of back-to-back negative performances for these funds. The previous day, December 19, saw a net outflow of $60 million, ending an 18-day streak of positive inflows.
Notably, BlackRock’s Ethereum Fund (ticker ETHA) was the only ETF to experience outflows on December 20, totaling nearly $103.7 million. In contrast, Fidelity’s Ethereum Fund (ticker FETH) saw a net inflow of $12.95 million, while Grayscale’s Ethereum Trust (ETHE) and Mini Trust (ETH) recorded positive inflows of $7.51 million and $8.10 million, respectively.
The two days of negative performances resulted in a total outflow of $135 million from ETH exchange-traded funds. However, these products finished the week with a total net inflow of $62.73 million, marking the fourth consecutive week of positive flows.
Similarly, spot Bitcoin ETFs have shown declining investor interest, registering approximately $276 million in net outflows on Friday.
Ethereum Price
Currently, the Ethereum price is approximately $3,342, reflecting a 2.4% decline over the past 24 hours. The return of positive inflows to spot ETFs may be crucial for stabilizing ETH's value.
Featured image from iStock, chart from TradingView