TechFlow News, July 26 — According to The Block, Grayscale's ETHE spot Ethereum ETF experienced net outflows of up to $1.2 billion during early trading, becoming a net market seller and contributing to an Ethereum price drop exceeding 10%. Analysts noted that the lack of buying pressure from other ETFs is the primary reason for Ethereum's underperformance. If current outflow rates persist, ETHE's assets could be depleted within weeks, exerting sustained selling pressure on Ethereum’s price.
Rachel Lin, CEO and co-founder of derivatives DEX SynFutures, said the launch of Ethereum ETFs has turned into a classic "sell the news" event, with Ethereum retreating more than 10% from recent highs. While Bitcoin ETFs experienced similar dynamics, the absence of offsetting buying pressure from other ETFs to counter Grayscale’s sell-off is the main cause of Ethereum’s weaker performance.
Lin added that analyzing Grayscale’s spot Bitcoin ETF sales pattern can help predict what may happen next—GBTC lost 50% of its Bitcoin assets in the first few months of trading. Currently, ETHE has already lost or reallocated over 17% of its assets. At the current pace of net outflows, it will soon reach that level, implying potentially greater downside risk for Ethereum.
