Spot Ethereum ETF has suffered a bit of a setback as it has experienced a slight halt in its performance. Unlike its initially recorded $1.5 billion in inflow in two weeks, the market recently experienced a drop of $78 million outflow from its initial $484 million – a move that is linked to a drastic market shift.
The majority of the outflows were seen in Grayscale Ethereum Trust (ETHE). According to data from Sosovalue, the spot Ethereum ETF hosted inflow on the second day, from the last three days after its major outflows. The fund, on the 30th of July, is responsible for hosting a cumulative inflow of $33.7 million and $26.7 million as of the 1st of August.
This hopeful performance in the flow coincided with the outflows seen in the sharp fall in Ethereum ETF. Grayscale Ethereum Trust recorded outflows that spanned between $133.3 million and $78 million over the last three days after losing between $484 million and $327 million in its first week of ETF trading. Grayscale Ethereum’s Assets Under Management (AUM) has dropped since its official launch on the 23rd of July.
Ethereum Makes a Major Upward Move, Prepares for Bullish Trend
The company AUM dropped by $456.4 million after $2.06 billion left the Ethereum ETF. This is an indication that over $1.6 billion has been moved to another fund. This major outflow from Grayscale Ethereum ETF is linked to the influx of opportunistic traders who purchased the Ethereum ETF shares at a discounted rate but went ahead to capitalize on the gains.
Ethereum shares reached an all-time low in the middle of 2023, trading at a 47% discount relative to Ethereum. The index investments and the Chief Information Officer (CIO) of the ETF at BlackRock, Samara Cohen, described the spot Ethereum ETF’s first week as “strong,” citing the high volume of trade it experienced during these moments.
Data from CoinMarketCap has shown that Ethereum had previously increased from $3,096 to trade at $3,200, hinting at a potential bullish trend. This movement is also seen as a sign of positive market sentiment and increased buying activity.
Ethereum Continues Display Positive Support, Polygon Whales Shock The Market
The price of Ethereum was trading between $3,100 and $3,150, displaying consistent bullish support. Ethereum further dropped to $3,029 later today, which led to sharp selling activities among traders. This latest development suggests a major bearish movement, which is likely to push the increased selling activities.
Ethereum ended the day with a much lower price compared to what it opened with. On the other news, Polygon (MATIC) whales, in an unexpected move, shifted their attention to XRP and Algotech (ALGT), a new performing AI token. This recent development has met the cryptocurrency community with shock, considering the implication of such a sudden shift in investor behavior.
MATRIC had gained a solid investor base due to its effort in addressing most of the limitations seen in Ethereum’s scalability feature and contributed immensely to the dApp’s positive performance. Investor’s trust has remained strong amid the sudden shift in interest, and also a declining price of MATIC, which is currently trading at $0.50.
XRP Shows Sign of Strong Resistance, MATIC Whales Reduce Investment Portfolio
The recent move of investor interest to Polygon Ecosystem Token (POL) in September has raised a new interest, which is seen in the growing number of addresses consistently growing for the past year. As of the time of this report, the active addresses have reached over 4,400.
The cryptocurrency market has experienced a moment of consolidation, as MATIC whales have drastically reduced their investment portfolio. Investigation into the whale’s investment strategy reveals that there may probably be more shifts in interest over time, as these MATIC whales are currently looking for more investment options to explore.
XRP, on the other hand, has recently shown signs of strong resistance in these trading sessions, a development that has renewed a new spark of optimism among both industry analysts and traders alike. Meanwhile, analysis on the FinBold platform has predicted a major rise in XRP in the coming days and has also maintained an unusual calmness in recent times.