• Ethereum’s price has started a recovery wave, rising above $2,350 after dropping to a low of $1,910.
• Technical indicators suggest ETH could climb higher if it clears the $2,680 resistance zone.
• Ethereum’s rebound shows similarities to a pattern from October 2023 that preceded a 178% price rally.
• On-chain metrics like the MVRV Z-Score and STH-NUPL indicate ETH may have hit a bottom.
• Some analysts predict ETH could potentially rally 100% or more before the end of the year if historical patterns repeat.

Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of a robust recovery after experiencing a significant price drop. The digital asset’s price has bounced back from a low of $1,910, climbing above the $2,350 resistance zone and sparking optimism among investors and analysts alike.

Technical analysis suggests that Ethereum (ETH) could be poised for further gains if it manages to clear key resistance levels. The price is currently trading below $2,640 and the 100-hourly Simple Moving Average, with a bullish trend line forming support at $2,440 on the hourly chart. If ETH can surpass the $2,680 resistance zone, it could potentially trigger a steady upward movement.

The current rebound bears a striking resemblance to a pattern observed in October 2023, which preceded a substantial 178% price rally. This similarity has led some analysts to speculate about the possibility of another significant price surge in the coming months.

On-chain metrics are also providing encouraging signals for Ethereum’s price outlook. The Market Value to Realized Value (MVRV) Z-Score, a key indicator for identifying market tops and bottoms, has dropped to 0.52. Historically, when this metric reaches such low levels, it has often signaled a market bottom and preceded notable price increases.

Another on-chain indicator, the Short-Term Holder-Net Unrealized Profit/Loss (STH-NUPL), has entered the capitulation region, suggesting a prevalence of fear in the market. Paradoxically, such extreme fear has often marked the beginning of price rallies in previous market cycles.

Based on these technical and on-chain indicators, some analysts are making bold predictions about Ethereum’s potential price movement. There’s speculation that ETH could potentially double its value before the end of the year, with some forecasts suggesting a possible rally to around $4,000 or even higher.

From a fundamental perspective, anticipated U.S. Federal Reserve rate cuts could potentially boost demand for Ethereum and other cryptocurrencies. As traders seek higher returns from riskier assets, they may move away from lower-yielding options like government bonds, potentially benefiting the crypto market.

The scenario draws parallels to March 2020, when the market sharply rebounded following the Fed’s intervention in response to the COVID-19 market crash. Current market data shows increasing probabilities of three rate cuts by 2024, which could create a favorable environment for crypto assets.

For Ethereum specifically, the next major hurdles on its potential upward trajectory include resistance levels at $2,680 and $2,720. A clear break above these levels could potentially open the path towards the $2,860 and $2,920 resistance zones. Some optimistic projections even suggest that ETH could approach the $3,000 mark if the bullish momentum continues.

If Ethereum fails to maintain its current momentum and falls below key support levels, particularly the $2,365 zone, it could trigger another decline, potentially pushing the price back towards the $2,250 or even $2,120 levels.

The post Ethereum (ETH) Price Shows Signs of Recovery: Analysts Eye Potential 100% Rally appeared first on Blockonomi.

• BlackRock’s iShares Ethereum Trust (ETHA) has accumulated nearly $900 million in inflows since its launch on July 23, 2024.
• ETHA saw $109.9 million in inflows on August 6, its third-biggest flow day.
• The ETF’s performance puts it among the top six best-performing ETFs launched in 2024.
• Spot Ether ETFs saw combined inflows of $98.4 million on August 6, their best day since launch.
• BlackRock and Nasdaq have proposed a rule change to list and trade options for BlackRock’s spot Ethereum ETF.

BlackRock’s iShares Ethereum Trust (ETHA), a spot Ether exchange-traded fund (ETF), has demonstrated remarkable growth since its launch on July 23, 2024. In just 11 trading days, the fund has accumulated nearly $900 million in total inflows, solidifying its position as one of the top-performing ETFs of 2024.

On August 6, ETHA recorded $109.9 million in inflows, its third-biggest flow day since inception. This surge brought its total inflows to $869.8 million, an impressive feat for a newly launched product. The fund’s performance is particularly notable given the recent volatility in the cryptocurrency market.

Nate Geraci, President of The ETF Store, highlighted ETHA’s success, stating that it now ranks among the top six best-performing ETFs launched in 2024. Remarkably, four of the other top performers are spot Bitcoin ETFs, including BlackRock’s IBIT, underscoring the growing institutional interest in cryptocurrency-based investment products.

After “Crypto Black Monday” (lol) where ETHA took in nearly $50mil…

It vacuums-up approx $110mil today.

That $160mil alone would put it in top 10% of all new ETFs this yr.

ETHA now nearing $900mil inflows 2 weeks in.

Top 6 ETF launch in 2024 (4 of 5 others = spot btc ETFs). https://t.co/JtEIXcu7Yc

— Nate Geraci (@NateGeraci) August 7, 2024

The strong inflows into ETHA came despite a significant drop in Ether’s price. On August 5, often referred to as “crypto black Monday,” Ether experienced an 18% price fall. However, this market downturn didn’t deter investors. ETHA scooped up $47.1 million on that day, demonstrating investors’ willingness to “buy the dip.”

The combined flows for ETHA on August 5 and 6 alone were substantial enough to place it in the top 10% of ETFs launched in 2024, according to Geraci. This achievement is even more impressive considering that spot Ether ETFs are not yet offering staking returns or options trading.

Spot Ether ETFs as a whole saw a combined $98.4 million inflow on August 6, marking their best day outside of their launch day. Fidelity’s spot Ethereum ETF was the second-largest beneficiary, with $22.5 million in inflows, while Grayscale Ethereum Mini Trust and Franklin Ethereum ETF saw $4.7 million and $1 million in inflows, respectively.

Anthony Sassano, host of the Ethereum show The Daily Gwei, commented on the trend, saying, “TradFi slurping up that ETH,” referring to traditional finance’s growing appetite for Ethereum exposure.

While ETHA and other new Ether ETFs have seen strong inflows, Grayscale’s higher-fee Ethereum product (ETHE) recorded an outflow of $39.7 million. When factoring in the $2.2 billion that has left ETHE, the spot Ether ETFs have still seen a combined $473.9 million in outflows overall.

The success of these Ether ETFs comes at a time of significant market volatility. Ether’s price dropped to a low of $2,116 on August 5, a 26% decline from the previous day’s high. However, the cryptocurrency has since partially recovered, trading at around $2,494 as of the latest data.

Looking ahead, BlackRock and Nasdaq have proposed a rule change to list and trade options for BlackRock’s spot Ethereum ETF. This move could provide investors with additional tools to gain exposure to spot Ether, potentially at a lower cost.

The filing stated, “The exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot Ether.”

The post BlackRock’s Ethereum ETF Surpasses $850M in Inflows Within Two Weeks appeared first on Blockonomi.

• Vitalik Buterin has outlined a plan for cross-chain interoperability between Ethereum layer-2 networks
• The plan includes several Ethereum Improvement Proposals (EIPs) aimed at enhancing cross-L2 compatibility
• Key proposals include EIP-3370 for a new address standard, EIP-7683 for cross-L2 communication, and EIP-3668 for off-chain data access
• Buterin predicts that all rollups will eventually adopt zero-knowledge technology, but this transition may take over 5 years
• VanEck has predicted that Ethereum L2 scaling networks could reach a $1 trillion market cap within six years

Ethereum co-founder Vitalik Buterin has presented a comprehensive plan to address one of the most pressing challenges in the cryptocurrency ecosystem: cross-chain interoperability between Ethereum layer-2 (L2) networks.

In a series of posts on social media platform X, Buterin outlined his vision for a seamless user experience across the entire “Ethereum-verse,” highlighting several key proposals and technological advancements that could make this a reality.

Cross-L2 roadmap in one tweet:

* 3770 (cross-L2 addrs)
* 7683 (cross-L2 sends via liquidity providers)
* 3668 (L2 light clients)
* Cross-L2-replayable account state updates

The above is enough already. Later, phase 2:

* L1sload/staticcall
* Keystore rollups
* Proof aggregation

— vitalik.eth (@VitalikButerin) August 5, 2024

The roadmap Buterin shared focuses on a set of Ethereum Improvement Proposals (EIPs) designed to enhance cross-L2 compatibility. One of the primary proposals is EIP-3370, which introduces a new address standard.

This standard would require wallets and decentralized applications (dApps) to display chain-specific addresses using human-readable prefixes, significantly simplifying the user interface and reducing the potential for errors when interacting with different L2 networks.

Another crucial component of the plan is EIP-7683, which aims to establish a standard communication protocol for different Ethereum L2 networks. This proposal addresses the current inefficiencies and complexities users face when attempting to trade assets across different chains. By implementing a unified set of rules, EIP-7683 could streamline inter-chain transactions, making it easier and more efficient for users to move assets between various L2 solutions.

EIP-3668 is also on the agenda, proposing a standardized method for Ethereum smart contracts to access off-chain data. Buterin refers to this as “layer-2 light clients,” explaining that it would make it easier and more cost-effective for developers to build applications that require large amounts of data without incurring high on-chain storage costs.

In addition to these proposals, Buterin discussed the concept of “cross-L2-replayable account state updates,” which he had previously elaborated on in a 2023 blog post. This approach allows L2 networks to receive recent layer-1 (L1) state updates while maintaining security and low latency, further enhancing the interoperability between different layers of the Ethereum ecosystem.

Looking ahead, Buterin mentioned several phase 2 updates to further improve cross-chain L2 compatibility, including keystore rollups and proof aggregation. He emphasized that the initial “stage 1” updates are independent of the specifics of rollup technology, suggesting a broader applicability across different L2 solutions.

Regarding the future of existing zero-knowledge (zk) and optimistic rollups, Buterin predicted that all rollups will eventually transition to zk technology to finalize transactions to Ethereum once per slot. However, he estimated that this transition would take more than five years to fully materialize.

The Ethereum co-founder’s optimism about solving cross-L2 interoperability issues is shared by some in the investment community.

Earlier this year, investment manager VanEck predicted that Ethereum L2 scaling networks could reach a $1 trillion market capitalization within six years, underscoring the significant potential of Buterin’s vision for cross-chain interoperability.

However, Buterin has also recently voiced concerns about overly complicated Layer 2 scaling solutions, highlighting the potential risks associated with complex L2 networks.

He urged for a more balanced approach in the development of blockchain ecosystems, aligning with the prevailing belief in the blockchain community that Layer 1 networks should prioritize simplicity to minimize the risk of critical bugs and attack vectors.

The post Vitalik Buterin Unveils Roadmap for Ethereum Layer-2 Interoperability appeared first on Blockonomi.

• Ethereum’s price is currently battling resistance around $3,300-$3,400 after a recent downward correction.
• ETH is down about 6.5% since the launch of spot Ethereum ETFs on July 23, but ETF flows recently turned positive with $33.67 million in net inflows on July 30.
• The ETH/BTC pair has gained 3.5%, suggesting potential for an altcoin season.
• Analysts are watching for a potential breakout above $3,400 that could push ETH towards $4,000.
• Market uncertainty remains due to factors like US government Bitcoin transfers and the upcoming FOMC meeting.

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is currently locked in a battle with key resistance levels as investors and analysts watch for signs of a potential breakout. As of July 31, 2024, ETH is trading around $3,312, down about 1% in the past 24 hours.

The cryptocurrency has faced downward pressure since the launch of spot Ethereum ETFs on July 23, with the price dropping approximately 6.5% since then. This decline was primarily fueled by initial capital outflows from these new investment products. However, recent data suggests a potential shift in momentum.

According to Farside Investors, the nine U.S. spot Ethereum exchange-traded funds saw net inflows of $33.67 million on July 30, ending a four-day streak of negative flows. This positive turn in ETF flows could signal renewed investor interest in Ethereum, potentially supporting its price in the near term.

From a technical analysis perspective, Ethereum is currently grappling with resistance in the $3,300-$3,400 range. This area is significant as it coincides with both the 50-day and 100-day exponential moving averages (EMAs). A daily close above $3,400 could pave the way for ETH to challenge the psychologically important $3,500 level, with some analysts eyeing a potential run towards $4,000.

However, the market remains cautious. The Relative Strength Index (RSI) on the daily chart is hovering around 49, suggesting that market conditions are currently neutral to slightly bearish. If Ethereum fails to breach the $3,330 resistance, it could face further downside pressure, with support levels identified at $3,250 and $3,230.

Adding to the market dynamics is the performance of the ETH/BTC pair, which has gained 3.5% to reach a ratio of 0.0491. This strengthening of Ethereum against Bitcoin has led some traders to speculate about a potential “altcoin season” on the horizon.

The broader cryptocurrency market has been influenced by several external factors. Bitcoin, the largest cryptocurrency, recently touched $70,000 before correcting to around $66,000. This correction coincided with news of the U.S. government transferring 29,800 Bitcoin confiscated from the Silk Road dark web marketplace, sparking concerns of a potential sell-off.

The crypto market is bracing for the upcoming Federal Open Market Committee (FOMC) meeting, which could impact investor sentiment and market direction.

For Ethereum specifically, on-chain data from Santiment indicates growing interest in ETH along with Bitcoin and Solana, compared to more speculative assets like meme coins. While this focus on top-tier cryptocurrencies often precedes price increases, some analysts caution that it could also be a sign of market caution.

Looking ahead, traders are closely watching technical indicators for signs of Ethereum’s next move. The Moving Average Convergence Divergence (MACD) indicator on the ETH/BTC chart is approaching a potential buy signal, which could drive further upside if confirmed. On the ETH/USD chart, a bullish MACD crossover in positive territory suggests the path of least resistance may be upward.

Ethereum bulls will need to overcome significant resistance levels to confirm a broader uptrend. A breakout above the inverse head-and-shoulders pattern on the ETH/BTC chart and a breach of the 50-day and 200-day EMAs on the ETH/USD chart would be seen as strongly bullish signals.

The post Ethereum (ETH) Price Battles Resistance: Is a Breakout Coming Soon? appeared first on Blockonomi.

• Compound Finance passed a controversial proposal allocating $24 million worth of COMP tokens to a new vault
• The proposal was narrowly approved despite objections from many community members
• Critics argue this may be a “governance attack” by a group called the “Golden Boys”
• The proposal’s main supporter, known as “Humpy,” has been involved in similar controversial actions with other DAOs
• This event has raised concerns about the vulnerability of DAO governance systems

Compound Finance, a popular decentralized lending platform, is facing criticism after passing a controversial proposal that allocates 499,000 COMP tokens, worth about $24 million, to a new yield-bearing vault.

The proposal, known as Proposal 289, was narrowly approved on July 28, 2024, sparking debate about the integrity of decentralized autonomous organization (DAO) governance.

The proposal passed with a slim majority of 51%, receiving 682,191 votes in favor and 633,636 against. It was put forward by a group called the “Golden Boys,” led by a COMP token holder known as “Humpy.”

The approved plan will move the tokens to a new vault controlled by this group, supposedly to provide additional yield for COMP holders.

According to the proposal:

“When a user places COMP into the goldCOMP vault, the depositor receives goldCOMP, a semi-liquid wrapped token representing their initial deposit.” The proposal claims these tokens can then be used to create “a passive income stream for COMP holders who plan to hold COMP for a long period of time.”

However, many community members and experts have raised concerns about this development.

Michael Lewellen, a security solutions architect at OpenZeppelin and advisor to Compound Finance, warned of a potential “governance attack” as early as May. Lewellen noted that the proposal “was not discussed prior in the forums and the delegate did not identify itself to the community prior to the proposal being created.”

Critics argue that the Golden Boys accumulated voting power through open market purchases, potentially undermining the principle of decentralized governance. The concern is that decisions may reflect the interests of a few powerful entities rather than the broader community.

Omer Goldberg, CEO of Chaos Labs, a firm focused on DeFi security, commented that the proposal was “poorly communicated” at best and potentially an attack happening in “plain sight” at worst. Goldberg emphasized, “The key lesson here remains clear: if the potential payoff exceeds the cost of exploitation, someone will attempt it.”

This isn’t the first time Humpy has been involved in controversial DAO actions. In 2022, the Ethereum-based Balancer protocol struggled with similar proposals from Humpy. A Messari report described it as a “cat-and-mouse game to control the whale’s profit-seeking activity through governance.” Humpy was also accused of attempting a governance attack on SushiSwap in March 2024.

The passage of Proposal 289 has led to a drop in COMP’s token price, which fell nearly 7% in the 24 hours following the vote. This decline suggests that the broader market views these developments negatively.

In response to criticisms, Humpy defended the proposal, stating, “‘Steal funds’ is a wrongful & misleading phrase, especially coming from compound’s risk specialist. Requested investment goes through a Trust Setup with a constraint set of actions that doesn’t permit stealing/diverting of funds.”

However, questions remain about the actual constraints on the Golden Boys’ control over the new vault. Wintermute’s governance account pointed out that “Any form of withdrawal action (divest) is solely controlled by GoldenBoyzMultisig, meaning that the DAO cannot actually recall funds at any time under their own discretion.”

The post Compound Finance Faces Controversy Over $24 Million Proposal appeared first on Blockonomi.

• Spot Ethereum ETFs experienced net outflows of $113-133 million on their second day of trading.
• Grayscale’s Ethereum Trust (ETHE) saw significant outflows of $326.9 million on the second day.
• Most new Ethereum ETFs posted positive inflows, with Fidelity and Bitwise leading.
• The Ethereum price dropped about 7-8% amid the ETF outflows and broader market sell-off.
• The total outflow from ETHE reached $811 million over the first two trading days.

The recently launched spot Ethereum exchange-traded funds (ETFs) in the United States have experienced a mixed start, with significant outflows on their second day of trading.

According to data from Farside Investors, the ETFs saw net outflows between $113 million and $133 million on July 24, just one day after their debut.

This turn of events comes after a strong start on the first trading day, when the ETFs recorded over $1 billion in trading volume and $106.6 million in net inflows.

However, the second day told a different story, with the majority of the outflows coming from a single source.

Grayscale’s Ethereum Trust (ETHE), which recently converted to a spot ETF, experienced the largest outflows. On July 24, ETHE saw $326.9 million leave the fund, contributing to a total of $811 million in outflows over its first two days as an ETF.

This selling pressure from ETHE overshadowed the positive inflows seen by most of the newly launched Ethereum ETFs.

Despite the overall negative flow, seven of the eight new Ethereum ETFs actually posted positive inflows on their second day. The Fidelity Ethereum Fund (FETH) led the pack with $74.5 million in inflows, followed by the Bitwise Ethereum ETF (BITW) with $29.6 million.

Other ETFs, including those from WisdomTree, VanEck, and BlackRock, also saw positive inflows, albeit smaller amounts.

The outflows coincided with a significant drop in Ethereum’s price. ETH fell by approximately 7-8% over 24 hours, trading around $3,170 at the time of reporting.

This price movement occurred alongside a broader sell-off in both the cryptocurrency and traditional equity markets, with the S&P 500 closing down 2.3% on July 24.

Analysts note that Ethereum’s price action was more pronounced than that of Bitcoin, which only fell about 2.6% during the same period. This aligns with predictions that ETH’s price could be particularly sensitive to ETF inflows and outflows in the early days of trading.

The performance of Ethereum ETFs isn’t without precedent. Bitcoin ETFs, which launched earlier, also experienced net outflows in six out of their first ten trading days. Many attributed those outflows to selling pressure from the Grayscale Bitcoin Trust ETF, similar to what we’re seeing with ETHE now.

It’s worth noting that the conversion of Grayscale’s Ethereum Trust to an ETF removed a six-month lock-up period on investments, allowing existing investors to sell their holdings more easily. This change likely contributed to the significant outflows seen from ETHE in its first days as an ETF.

The post Ethereum ETFs Experience Net Outflows on Second Trading Day appeared first on Blockonomi.

• Ethereum (ETH) price dropped over 7.5%, trading above $3100.
• Grayscale’s Ethereum Trust ETF (ETHE) experienced significant outflows of over $800 million.
• Other Ethereum ETFs, including those from BlackRock, Bitwise, and Fidelity, saw positive inflows.
• Ethereum’s price decline coincides with poor performance in the tech sector, including Nvidia.
• Analysts suggest the ETF launch timing and market conditions contribute to current selling pressure.

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price drop of over 7.5% in recent trading, with its value hovering above $3100.

This decline comes in the wake of the much-anticipated launch of Ethereum ETFs, which have shown mixed performance in their early days of trading.

The newly converted Grayscale Ethereum Trust ETF (ETHE) has faced substantial outflows, with over $800 million leaving the fund. This mirrors the pattern seen earlier this year with Grayscale’s Bitcoin Trust when it converted to an ETF.

However, not all Ethereum ETFs are experiencing the same fate. Several other funds, including those managed by industry giants BlackRock, Bitwise, and Fidelity, have reported positive inflows. BlackRock’s ETHA led the pack with $283.9 million in inflows, followed by Bitwise’s ETHW with $233.6 million, and Fidelity’s FETH with $145.7 million.

The overall Ethereum ETF launch has been successful in terms of asset attraction, with a reported $10.2 billion in assets and net inflows of $107 million. However, the initial excitement seems to have faded, leading to what some analysts describe as a “sell-the-news” scenario.

This pattern has been observed in previous significant events in the crypto market, including December 2017, April 2021, October 2021, and January 2024.

Several factors are contributing to the current market pressures on Ethereum. The timing of the ETF launch coincided with the distribution of Bitcoin from Mt. Gox, adding extra selling pressure to the broader crypto market.

Additionally, the US tech earnings season has started poorly, with major companies like Alphabet and Tesla experiencing sell-offs. This tech sector weakness is particularly relevant to Ethereum’s price, as the cryptocurrency has shown a strong correlation with tech stocks, especially Nvidia, which is down over 6%.

Ethereum’s fundamentals, including new user growth and revenue, have reportedly stagnated. Before the ETF launch, some research firms highlighted Ethereum as overbought, suggesting it was primed for a short trade. This view has been supported by the subsequent 6% decline since the report.

Looking at technical indicators, Ethereum may face further downward pressure in the short term. The current trading range suggests a possible decline toward the $3,203 support level before potentially rising to the $3,731 resistance level. Some analysts even speculate that Ethereum could test its crucial support level of $3,000 within the month if bearish trends continue.

Despite the recent downturn, it’s worth noting that Ethereum is still up 72% over the past year and has outperformed the CoinDesk 20 index year-to-date. Ethereum is up 35% compared to the index’s 21.6% increase.

The post Ethereum Price Dips Following ETF Launch and Market Pressures appeared first on Blockonomi.

• Bitcoin price dropped from $65,500 to around $64,000 in early Asian trading hours.
• Over $250 million in bullish bets were liquidated, the largest amount since early July.
• Ethereum saw a larger drop of about 7.5-8.5% amid outflows from the new ETH ETF.
• The crypto selloff followed a major decline in US tech stocks and spread to Asian markets.
• Bitcoin’s correlation with global stocks has become unusually negative recently.

The cryptocurrency market experienced significant turbulence on Thursday, July 25, 2024, as prices of major digital assets fell sharply.

This downturn came in the wake of a broader selloff in global equity markets, particularly affecting US technology stocks.

Bitcoin, the largest cryptocurrency by market value, saw its price drop from over $65,500 to around $64,000 within minutes during early Asian trading hours.

This represents a decline of about 3%. The sudden price movement led to the liquidation of over $250 million in bullish bets, marking the largest such event since early July.

Ethereum, the second-largest cryptocurrency, faced an even steeper decline. Its price fell by approximately 7.5-8.5%, a move that some analysts attribute to outflows from the newly launched Ethereum ETF.

The Grayscale Ethereum ETF (ETHE) saw outflows of more than $811 million, reducing its assets under management to less than $8 billion.

The cryptocurrency market’s downturn appears to be closely linked to movements in the traditional financial markets. On Wednesday, July 24, Wall Street experienced its worst trading day since 2022.

The tech-heavy Nasdaq 100 index lost 660 points, with major technology companies like Alphabet (Google’s parent company) and Tesla seeing significant drops in their stock prices.

The effects of this US market decline spread to Asian markets early Thursday. Japan’s Nikkei 225 index slumped more than 3%, while the MSCI Asia Pacific Index dropped by 1.5%.

Market analysts suggest that these movements reflect a broader reassessment of the artificial intelligence sector and persistent worries about consumer demand in the US.

Bitcoin’s relationship with global stocks has shown an unusual pattern recently. The 30-day correlation coefficient between Bitcoin and the MSCI index of global shares has approached minus 0.20. This indicates that Bitcoin and global stocks are moving in opposite directions, a rare occurrence since 2020.

Despite the recent drop, Bitcoin has still performed well in 2024, with a year-to-date gain of about 51%. This growth has been partly driven by strong demand for US-based Bitcoin exchange-traded funds (ETFs).

The crypto market’s reaction to global economic trends highlights its increasing integration with traditional financial markets.

As digital assets become more mainstream, they appear to be more susceptible to the same factors that influence stocks and other conventional investments.

The post Crypto Market Dips as Global Stocks Decline appeared first on Blockonomi.

• Grayscale’s Ethereum ETF (ETHE) saw $484 million in outflows on its first day of trading.
• BlackRock’s Ethereum ETF (ETHA) led with $265 million in inflows.
• The total trading volume for Ethereum ETFs on day one was $1 billion.
• Grayscale’s ETF has a high expense ratio of 2.5%, while competitors offer lower fees.
• The Ethereum price remained stable around $3,450 during the ETF launches.

The long-awaited spot Ethereum ETFs began trading on U.S. exchanges, marking a significant moment for cryptocurrency investors.

These new investment products allow people to gain exposure to Ethereum without directly owning the digital asset.

On the first day of trading, the Ethereum ETFs saw a total volume of $1 billion. This figure represents about 23% of the volume that spot Bitcoin ETFs recorded on their debut earlier this year.

The launch brought both inflows and outflows, with some ETFs performing better than others.

BlackRock’s iShares Ethereum Trust (ETHA) emerged as the leader among the new offerings. It attracted $265 million in inflows on its first day, showing strong investor interest.

DAY ONE in the books for Eth ETFs who did $1b in total volume, which is 23% of what the spot bitcoin ETFs on their first Day and $ETHA did 25% of $IBIT's volume. The gap between $ETHE and The Newborn Eight is a healthy +$625m (a sizable chunk of which *should* convert to inflow pic.twitter.com/jaP4dKLrOs

— Eric Balchunas (@EricBalchunas) July 23, 2024

Other new entrants also saw positive results. The Bitwise Ethereum ETF (ETHW) received over $200 million in inflows, while Fidelity’s Ethereum ETF (FETH) brought in more than $70 million.

However, not all ETFs experienced inflows. The Grayscale Ethereum Trust (ETHE), which converted from a closed-end fund to an ETF, faced significant outflows.

Investors pulled $484 million from ETHE on its first day of trading as an ETF. This outflow represents about 5% of the fund’s total assets under management.

The contrasting performance between Grayscale’s offering and the new ETFs may be partly due to differences in fees. ETHE has an expense ratio of 2.5%, making it the most expensive among U.S. Ethereum ETFs.

In comparison, other issuers are offering much lower fees, typically ranging from 0.15% to 0.25%.

Grayscale has introduced a new product, the Ethereum Mini Trust (ETH), with a more competitive fee structure. This fund charges only 0.15% and even waives this fee for the first six months or up to $2 billion in assets.

This move could help Grayscale attract new investments and potentially reduce outflows from its main Ethereum product.

Despite the excitement surrounding the ETF launches, the price of Ethereum remained relatively stable. It traded around $3,450 throughout the day, suggesting that investors are taking a cautious approach to these new investment vehicles.

The launch of Ethereum ETFs follows the successful introduction of spot Bitcoin ETFs earlier this year. While the first-day trading volume for Ethereum ETFs was lower than that of Bitcoin ETFs, it still represents a significant milestone for the cryptocurrency industry.

The post $484 Million Outflow from Grayscale’s Ethereum Trust on ETF Launch Day appeared first on Blockonomi.

• Spot Ethereum ETFs launched in the US on July 23, 2024, with nine funds trading on their first day.
• The ETFs saw over $1 billion in total trading volume, with BlackRock’s fund leading in inflows.
• Grayscale’s converted Ethereum Trust experienced significant outflows of $484 million.
• The combined net inflow across all funds was $107 million, considered a solid start.
• Ethereum’s price remained relatively stable, showing little immediate reaction to the ETF launch.

On July 23, 2024, the United States saw the launch of its first spot Ethereum exchange-traded funds (ETFs). Nine funds began trading, marking a significant milestone for the world’s second-largest cryptocurrency by market value.

The debut day was marked by high trading volumes, with the combined total exceeding $1 billion across all nine funds. This strong start positions the Ethereum ETFs well, although it didn’t surpass the massive launch seen with Bitcoin ETFs earlier.

BlackRock’s iShares Ethereum Trust ETF (ETHA) emerged as a top performer, recording $266.5 million in inflows on its first day. This impressive showing placed it among the best-performing new ETF launches ever. Bitwise Asset Management’s ETHW fund also saw strong demand, with inflows of $204 million.

However, not all funds experienced the same level of success. Grayscale’s newly converted Ethereum Trust (ETHE) saw significant outflows of $484 million.

UPDATE: First full day of flows for the ETHness stakes are in. The Ethereum ETFs took in $107 million. @BlackRock's $ETHA lead the way with $266.5 million followed by @BitwiseInvest's $ETHW with $204 million. Very solid first day pic.twitter.com/j28vIwVWvR

— James Seyffart (@JSeyff) July 24, 2024

This was expected by many analysts, as investors moved to realize profits from the previous premium gap and potentially reallocate to funds with more favorable fee structures. Grayscale’s ETH fee stands at 2.5%, considerably higher than its competitors.

To counter this outflow, Grayscale launched an Ethereum Mini Trust (ETH) with a $1 billion assets under management starter and a more competitive 0.15% fee. This new fund saw an inflow of $15 million on its first trading day.

Despite the substantial outflows from Grayscale, the overall picture for Ethereum ETFs remained positive. The combined net inflow across all funds totaled $107 million, which Bloomberg ETF analyst James Seyffart described as a “very solid first day.”

Other funds saw varying levels of interest. Fidelity’s FETH fund recorded $71 million in inflows, while 21Shares, Invesco, VanEck, and Franklin saw more modest inflows between $7.5 million and $13 million each.

The launch of these ETFs had little immediate impact on Ethereum’s price. The cryptocurrency traded at around $3,430 on July 24, showing only minor fluctuations. This stability contrasts with the significant price movements often seen in the crypto market around major events.

Looking ahead, analysts have diverse predictions for Ethereum’s price movement. Some suggest it may retreat below $3,000 in the short term, while others forecast new all-time highs in the long run as institutional investors gain easier access through these ETFs.

The launch of Ethereum ETFs follows the approval of Bitcoin ETFs earlier in the year. This development marks another step in the integration of cryptocurrencies into traditional financial markets.

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