Key Highlights:
- Ether ETF Withdrawals: Spot ether ETFs recorded their fifth consecutive day of outflows, totaling $952 million in withdrawals.
- Spot Bitcoin ETFs: In comparison, spot bitcoin ETFs experienced $246.4 million in net inflows during the past week.
- Recent Performance: Despite the outflows, ether’s value surged by over 16% this past month, bolstered partially by the enactment of the GENIUS Act.
Details:
Spot ether exchange-traded funds (ETFs) faced significant withdrawals, losing a total of $952 million this week and $787 million over a four-day period. This follows a record August when ether ETFs attracted $3.87 billion while bitcoin ETFs faced $751 million in outflows, as per data from SoSoValue.
On Friday alone, these ETH funds faced the largest drop, with $446.71 million exiting. Meanwhile, net inflows into bitcoin ETFs totaled $246.4 million last week, contrasting sharply with the prior month’s significant outflows for bitcoin.
Market Dynamics:
Currently, ether trades just below $4,300, having made substantial gains amid the legislative clarity brought forth by the GENIUS Act, which restricts stablecoin issuers from providing interest payments and fosters a more conducive environment for institutional investment.
Overall market trends suggest a broader retreat in risk assets spurred by weaker U.S. job data and increasing concerns about possible recessionary conditions. Expectations have risen for rate cuts by the Federal Reserve, with traders estimating an 89% likelihood of a 25 bps reduction this month.
