- Ethereum ETFs have seen significant outflows that far exceed total flows.
- Crypto analyst ZERO IKA warns that ETFs are not necessarily bullish on assets.
The launch of Ethereum [ETH] Exchange-Traded Funds, the expected surge in Ethereum’s price up to $4,000 is yet to manifest.
According to ETH, ETH’s price has fallen by 2.94% since the last 24 hours. CoinMarketCap.
ETH ETF market trend
Ethereum ETFs experienced a net outflow in the amount of $6.55 million on the 20th August. This trend has continued since the 15th August. Farside Investors.
Closer examination revealed a remarkable pattern, where Grayscale ETHE is experiencing a consistent outflow that far exceeds total flows in ETH ETFs.
ETHE was responsible for $37 Million in Outflows as of August 20th, which contributed $6.5 Million to Ethereum ETFs’ overall Net Outflow.
ETHE, since its creation, has experienced a net outflow totaling $247.8 Million, while all Ethereum ETFs have accumulated a net loss of $440.5 Million.
Execs defy ETF notion
Analysts disagree with the widely held belief that ETFs are inherently positive for Ethereum, and other assets. ZERO IKA argue,
“The thing that ETFs are just “bullish engines” is as far from reality as possible.”
Then, He added.
“The last method seems completely out of everyone’s mind and there’s this “echo chamber” in which the majority believe that ETF ~> bullish. ”
The ZERO IKA team challenged the notion that asset prices are automatically influenced by ETFs.
He said that institutions and hedge fund use ETFs as tools to make money, often using both strategies of buying (longing), and selling (shorting), assets.
The perspective presented here suggests that ETFs can not only be bullish, but also used as a tool to manipulate the markets in order to gain institutional gains. This casts doubt on ETFs’ supposed positive effect on asset value.
BTC ETF market trend
Interestingly, Grayscale’s Bitcoin [BTC] ETFs (GBTC) have also seen periods of outflows that mirror the trend with Ethereum ETFs. Farside Investors.
On certain days the outflows were greater from GBTC than in the broader Bitcoin ETF, revealing similar patterns for institutional movements and market manipulation.
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Source: ambcrypto.com
