Ethereum Price Movement
In recent developments, Ethereum briefly surpassed the $2,700 mark, achieving a weekly high before slightly declining. As of now, Ethereum is trading at $2,646, which is approximately 1.5% lower than the previous day, according to data from CoinGecko. This change followed a mixed performance of U.S. spot Ethereum ETFs, with modest inflows of $5 million after experiencing withdrawals amounting to $42.4 million over the previous three days. Notably, the Grayscale Ethereum Trust (ETHE) recorded its first day without any outflows.
Grayscale's Ethereum Fund Performance
The Grayscale Ethereum Trust, which first began as an Ethereum fund in 2017, transitioned to a spot ETH fund on July 23. Initially, it managed over $9 billion in assets, but this has since reduced by $2.2 billion. This decrease reflects the overall price fluctuations in the crypto market. Notably, when these funds started trading a few weeks ago, Ethereum was valued at around $3,500 in spot markets, indicating a significant drop of over 23% since then.
Institutional and Retail Investor Interest
The interest in Ethereum isn't confined to U.S. ETFs alone. Spectrum Markets, a trading firm based in Frankfurt, highlights the broader institutional interest in Ethereum, especially following the European Investment Bank's issuance of its first digital bond in 2021. Despite Bitcoin's advancements, many investors are drawn to Ethereum due to its technological innovations like 'staking', which allows dividend-like payments. Michael Hall from Spectrum Markets pointed out an increase in retail interest, with the firm's SERIX value for Ethereum rising from 110 to 113 in July, whereas the same metric for Bitcoin remained stable at 108.
Comparative Analysis: Bitcoin vs. Ethereum
BRN analyst Valentin Fournier observed a shift in Bitcoin ETFs, with investments increasing by $28 million. This indicates a resilience in Bitcoin during volatile times, potentially leading to decreased volatility in the long run. Fournier anticipates a possible retracement for Bitcoin before the month's end, recommending a balanced investment in both BTC and ETH. Despite a generally bullish outlook, he advises cautious reductions in Bitcoin exposure towards the end of August and September due to potential price corrections.
