- Ethereum ETFs saw significant outflows, which dwarfed total flows.
- Crypto analyst ZERO IKA warned that ETFs may not be inherently bullish for assets.
Since the launch of Ethereum [ETH] Exchange-Traded Funds (ETFs), the expected rise in the price of Ethereum to $4,000 has yet to materialize.
In reality, ETH has suffered a decline and was trading at $2,584 at the time of writing, down 2.94% in the past 24 hours, according to CoinMarketCap.
ETH ETF market trend
Additionally, Ethereum ETFs have experienced a notable net outflow of $6.5 million as of August 20, with the outflow trend continuing since August 15. Farside Investors.
Closer examination of the data revealed a striking pattern in which Grayscale’s ETHE is experiencing a continuous outflow series that significantly dwarfs the total flows for ETH ETFs.
As of August 20, ETHE alone was responsible for $37 million in outflows, contributing to the total net outflows of $6.5 million for Ethereum ETFs.
Since its inception, ETHE has seen a staggering net outflow of $247.8 million, while the total net outflow across all Ethereum ETFs is $440.5 million.
Executives defy the idea of ETF
Despite widespread belief that ETF launches are inherently bullish for Ethereum and other assets, crypto analyst argues ZERO IKA argue,
“The fact that ETFs are merely ‘bullish engines’ is as far removed from reality as possible.”
He added:
“The latter method seems to be completely out of everyone’s mind and there is an “echo chamber” where the majority believe that ETF ~> is bullish. “
Here, ZERO IKA challenged the common idea that ETFs automatically drive up asset prices.
Instead, he warned that ETFs are often used by institutions and hedge funds as profit-generating tools, using strategies such as buying (longing) and selling (shorting) assets.
This perspective suggests that ETFs are not simply bullish instruments, but can be used to manipulate markets for institutional gain, casting doubt on their supposed positive impact on asset values.
BTC ETF market trend
Grayscale’s Bitcoin is interesting [BTC] ETF (GBTC) has also seen periods of significant outflows, mirroring the trends seen in Ethereum ETFs according to Farside Investors.
On certain days, outflows from GBTC have exceeded net outflows from the broader Bitcoin ETF market, highlighting similar patterns of institutional movement and potential market manipulation.