Ethereum Surges 10% as Grayscale ETF Outflows Decelerate

Ethereum Surges- Ethereum Price Climbs 10% with Grayscale ETF Outflows Slowing Down

Ethereum Surges- On Friday morning, Ethereum surged by over 10%, crossing the $2,700 mark and outpacing both Bitcoin and Solana as the broader crypto market made up some of the losses incurred during Monday’s dramatic crash.

Currently, Ethereum’s price hovers around $2,664, reflecting a 9.6% increase for the day, according to CoinGecko. Despite this positive movement, the cryptocurrency remains down more than 15% for the week.

Trading volume for Ethereum has risen by 5% in the past 24 hours, while open interest has jumped by 15%, as reported by Coinglass. This uptick suggests that investor sentiment towards Ethereum is improving, a trend also seen in the broader crypto market. The Crypto Fear & Greed Index has returned to neutral after previously plummeting to levels reminiscent of the aftermath of the FTX collapse earlier in the week.

The recovery has been partly fueled by a retreat from large-scale holders, such as venture capital firms Jump Crypto and Paradigm, who have eased their asset liquidation efforts. Over the weekend, prior to the market turmoil, blockchain analytics firm Arkham Intelligence observed that Jump Crypto had begun moving substantial portions of its $243 million crypto holdings, including a significant amount of Ethereum, with some assets being transferred to exchanges. As of now, Jump Trading’s Ethereum holdings are slightly above $15 million, reflecting a $1 million increase in just one day, according to Arkham.

However, some experts argue that Ethereum may need more time to fully capitalize on its recovery. The U.S. spot Ethereum ETFs have been active for less than two weeks. While the introduction of these ETFs is theoretically positive for Ethereum—providing institutional investors with a regulated means to gain exposure—the actual impact may be tempered. Jonathan Bier, CIO at FarsideUK, noted that much of the momentum might come from investors shifting existing Ethereum Trust holdings into these new ETFs.

On Thursday, Ethereum ETFs experienced net outflows of just $2.9 million, as per Farside Investors. Specifically, Grayscale’s Ethereum Trust (ETHE) saw a slowdown in outflows to $19.8 million, although Fidelity’s FETH recorded its first day of outflows since its launch.

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