Grayscale’s Ethereum Trust Sees Largest Single-Day Outflow Since July

In a significant market movement, Grayscale’s Ethereum Trust recorded its largest single-day outflow since July, with almost $81 million exiting the fund on Tuesday as investors seemingly capitalized on Ethereum’s recent surge.

Grayscale’s spot ether ETF (ETHE) experienced $80.6 million in outflows yesterday. This event marked the most substantial single-day outflow since spot ether ETFs launched in July. The timing of this mass exodus aligns with ether’s recent price increase of almost 20% over ten days, reaching $2,700 before settling at $2,600.

Grayscale’s Ethereum Trust Outflows Surpass Expectations

In comparison, other ether ETFs barely saw any significant action. Bitwise’s ETHW was an exception, experiencing $1.3 million in outflows. Consequently, the total spot ETH ETF market registered net outflows of $79.3 million on the day.

Since the debut of spot ether ETFs in July, Grayscale’s ETHE has faced cumulative outflows of $2.84 billion. Overall net outflows for spot ether ETFs have reached $686.9 million, underscoring the inadequacy of inflows into other funds like BlackRock’s ETHA in offsetting the departures from ETHE.

Challenges Facing Spot Ether ETFs

Read more: ETH ETFs Will Be Approved. But Could Grayscale Outflows Depress the Price of ETH?

Spot ether ETFs have not matched the popularity of bitcoin ETFs. The total market capitalization for spot ether ETFs is $5.87 billion, contrasting sharply with the $74.90 billion market cap of Bitcoin ETFs.

Despite facing lukewarm reception compared to their Bitcoin counterparts, some analysts are optimistic about Ethereum’s potential trajectory under specific political scenarios. On the latest episode of Unchained, Travis Kling, CIO of Ikigai Asset Management, expressed that a Donald Trump victory in the upcoming 2024 U.S. presidential election might serve as a short-term catalyst for ether.

“If Trump wins, it would be my base case—though not financial advice—that ETH will go up a lot in the immediate response,” Kling stated. He believes a Trump administration might result in a more crypto-friendly SEC, fostering regulatory clarity and adding new value to ether. Kling further added, “ETH is a great way to play that, especially now that you can invest through an ETH spot ETF, providing traditional investors with a straightforward entry point into the cryptocurrency space.”