In recent days, Ethereum ETFs have experienced significant outflows, driven by growing macroeconomic uncertainty and fading confidence in economic stimuli.
Overview of Ether ETFs
Ethereum ETFs have seen outflows totaling over $1.04 billion over six consecutive trading days, attributed to investors pulling back amid rising macroeconomic uncertainty. On Monday, $96.7 million in outflows were recorded, with the largest coming from BlackRock’s ETF, totaling $192.7 million. This was partially offset by $75 million inflows into Fidelity's ETF and $9.5 million into Grayscale.
Economic Uncertainty
The sell-off is occurring as traders reassess the Federal Reserve's policies. Despite a 100% probability of a 25bps cut, some strategists warn that such cuts may not yield the expected economic boost. David Kelly, chief global strategist at JPMorgan Asset Management, pointed out that lower rates could diminish retirement income and dampen business sentiment, potentially worsening the macro backdrop.
Positive Trends in Bitcoin ETFs
While Ether ETFs are suffering from outflows, Bitcoin ETFs reported a net inflow of $368.25 million on Monday, breaking a two-day streak of outflows totaling over $387 million. The total trading volume across Bitcoin ETFs reached $3.02 billion, with total net assets climbing to $145.41 billion.
The situation with Ether ETFs reflects how rising macroeconomic uncertainty is influencing investor decisions, resulting in significant outflows. In contrast, Bitcoin ETFs are demonstrating positive outcomes amidst this dynamic.
