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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions
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Breaking News: Bitcoin Outlook Post Fed's 0.25% Rate Cut: Historical Patterns And Predictions

Ethereum Price Drops 12% As Spot ETFs Witness Significant Net Outflows

Opeyemi Sule
Opeyemi Sule
Last Updated: December 22, 2024 12:00 pm
2 mins read
Bitcoin price

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The Ethereum price has been a joy to watch in recent weeks after initially struggling to keep pace with other large-cap cryptocurrencies. However, the past week will be a quick one to forget for the crypto market, especially the altcoin, which declined in value by over 12%.

While this price slump experienced by Ethereum has been linked to the US Federal Reserve rate cut, the recent drab performances of the spot ETH exchange-traded funds (ETFs) could also be associated. After a lengthy spell of positive inflows, investor interest in the US-based ETH ETFs seems to be losing momentum.

Spot ETH ETFs Snap 18-Day Positive Inflows Streak

According to data from SoSoValue, the US-based spot Ethereum ETFs logged a total net outflow of $75.11 million on Friday, December 20. This marked the first time the Ethereum funds would be registering back-to-back negative performances.

On Thursday, December 19, the Ethereum exchange-traded funds recorded a total net outflow of $60 million. This single-day performance put an end to the ETH ETF’s 18-day streak of positive inflows and the first negative day in December for the products.

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Surprisingly, BlackRock’s Ethereum Fund (with the ticker ETHA) was the only spot ETF that recorded outflows on Friday. According to market data from SoSoValue, the ETHA exchange-traded fund posted nearly $103.7 million to close the week. 

Meanwhile, Fidelity’s Ethereum Fund (with the ticker FETH) recorded $12.95 million in net inflow on Friday. Grayscale’s Ethereum Trust (ETHE) and Mini Trust (ETH) were the only other ETFs that registered positive inflows on the day, with $7.51 million and $8.10 million, respectively.

Ethereum
Source: SoSoValue

These back-to-back days of negative performances saw a net $135 million flow out of the ETH exchange-traded funds in just two days in the past week. However, the crypto products finished with a weekly total net inflow — for the fourth consecutive week — of $62.73 million.

Similarly, the spot Bitcoin ETFs appear to be losing interest from investors, as most funds recorded outflows to close the past week. The crypto products registered a daily net outflow of approximately $276 million on Friday.

Ethereum Price

As of this writing, the Ethereum price stands at around $3,342, reflecting a 2.4% decline in the past 24 hours. Given their impact on the value of ETH, it might be important for the spot ETFs to return to positive inflows if the Ethereum price is to see any relief.

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The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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Opeyemi Sule
Opeyemi Sule

Opeyemi Sule

Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

Read more

Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part - in fact, far from it.

Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books - ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time - he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon - cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment - spreading the crypto gospel to the rest of the world.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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