Spot ether exchange-traded funds (ETFs) faced significant outflows, totaling $952 million over a five-day period, marking their fifth consecutive day of withdrawals. This trend contrasts sharply with the performance of spot bitcoin ETFs, which reported net inflows of $246.4 million during the same week. Notably, Friday saw the most substantial outflow, with approximately $446.71 million leaving these ether-linked funds.
These recent withdrawals followed a record-setting month of August, during which spot ether ETFs had attracted $3.87 billion, while bitcoin ETFs struggled with $751 million in net outflows. Despite the current outflow trend, ether has maintained a robust performance, gaining over 16% in value in the previous month. This increase is partly attributed to the passage of the GENIUS Act, which introduced regulations limiting interest payments from stablecoin issuers and offered clarity expected to draw in institutional investment.
However, the cryptocurrency’s price slipped by about 1.8% recently, trading just below the $4,300 mark. The recent market movements align with a broader shift towards risk assets following disappointing U.S. employment data, which heightened expectations for interest rate cuts by the Federal Reserve. Current trader sentiment suggests an 89% probability of a 25 basis points rate cut, alongside an 11% chance for a 50 basis points cut.
Geopolitical uncertainties and economic concerns have also contributed to a surge in gold prices, surpassing $3,600 per ounce for the first time.
As the market evolves, the dynamics of ethereum and bitcoin ETFs remain a focal point, reflecting traders’ sentiments and broader economic indicators.
________
At Crypto Dummies, we strive to demystify the complexities of the cryptocurrency world for enthusiasts of all levels. Through insightful articles, guides, and analysis, we cover topics ranging from blockchain technology to market trends and investment strategies. Stay informed and empowered with Crypto Dummies – your go-to source for accessible crypto knowledge.
