The Ethereum market has seen a bit of a lull in recent weeks, with the altcoin’s price remaining relatively stagnant despite consistent capital inflows into US-based spot Ethereum exchange-traded funds (ETFs). This lackluster performance comes on the heels of a 19-day streak of positive inflows, which unfortunately came to an end on June 13th when the ETFs experienced their first net outflow in nearly three weeks.
The sudden withdrawals from the ETFs could be attributed to the escalating tensions between Israel and Iran, which caused a ripple effect across risk assets like cryptocurrencies and stocks. Data from SoSoValue reveals that the Fidelity Ethereum Fund (FETH) was the main contributor to the outflows, recording a net outflow of $8.85 million on that particular day.
Grayscale’s Ethereum Mini Trust (ETH) was the only fund that saw a positive net inflow, amounting to $6.67 million. Despite this single-day setback, the overall performance of the Ethereum ETFs over the past week has been impressive, with a total capital inflow of $528.12 million. This marks the fifth consecutive week of positive inflows, totaling $1.384 billion over that period.
Interestingly, the price of Ethereum has not necessarily mirrored the activity of the ETF investors, as is often the case with Bitcoin. While the price of ETH has surpassed the $2,800 mark at one point, it has struggled to maintain a sustained upward trajectory. The recent dip in price, following a brief surge, highlights the volatility in the market driven by external factors like geopolitical tensions.
As of now, the price of ETH hovers around $2,511, reflecting a slight decline in the past 24 hours. Despite the positive inflows into the ETFs, the price of Ethereum has not seen a significant uptick, leading to speculation about what might be hindering the growth of the second-largest cryptocurrency.
Overall, the Ethereum market remains dynamic and responsive to external events, making it a fascinating space to watch for both investors and enthusiasts alike. Stay tuned for more updates on the evolving landscape of cryptocurrency trading.