Grayscale Ethereum Trust (ETHE) unlock period coming to an end, Ethereum ETF potentially on the horizon
Bloomberg ETF analyst Eric Balchunas said that the Ethereum spot ETF is experiencing a setback as the new ETFs cannot offset the outflow of funds from Grayscale's ETHE, but the good news is that the unlocking is about to end, and there is light at the end of the tunnel!
Ether ETFs Went Backward in First Month.. flows -$476m as the newbies couldn't overcome the $ETHE unlock, too powerful a force (this is why I reiterated how heroic the New Nine bitcoin ones were) but good news is unlock will end, there's light at end of tunnel via @JSeyff pic.twitter.com/Y8QphnFAXq
— Eric Balchunas (@EricBalchunas) September 3, 2024
Table of Contents
According to statistics from Farside, the total net outflow of funds for the Ethereum spot ETF since its listing is $524.8 million, with Grayscale's ETHE experiencing a net outflow of $2.61 billion. The total asset value has also decreased from $10.24 billion on 7/23 to $6.97 billion on 8/30. The asset price is denominated in USD, reflecting a drop in the price of Ether from $3,482 to $2,526 on 8/30.
Grayscale's ETHE had an asset value of $8.6 billion at its listing on 7/23, which has dropped to $4.53 billion as of 8/30. Data provided by SoSoValue shows that its net outflow, which was $480 million on 7/23, has gradually decreased to zero outflows by 8/30!
Recently, a consortium of cryptocurrency companies including Coinbase and Blockdaemon introduced a new node operator standard called NORS, aiming to attract more institutional investors to participate in Ethereum staking.
As compliance and cryptocurrencies gradually catch the eye of the general public, will it be as Eric Balchunas predicts, that the unlocking is about to end, and there is light at the end of the tunnel!
Or as cryptocurrency analyst Ignas suggests, although the current flow of the Ethereum spot ETF is low, when the market turns bullish, there may be a significant influx of funds. While institutions have not entered the market yet, if they want to, they will find a way!
Ignas: Top Ten Reasons for Bullish on ETH