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Highlights
- Spot Ether ETFs recorded $60.47 million net outflows, ending 18-day streak.
- Grayscale Ethereum Trust led outflows with $58.13 million.
- Ethereum price dropped sharply, settling at $3,371.
The US spot Ether ETF market experienced a significant downturn on December 19, ending an 18-day streak of positive net inflows. Total outflows reached $60.47 million, reflecting a sharp reversal in sentiment. Among the most impacted was the Grayscale Ethereum Trust (ETHE), which accounted for $58.13 million in net outflows. Other ETFs, including those by Bitwise, Invesco, and Grayscale’s smaller offerings, added to the negative trend with a combined outflow of $12.28 million.
In contrast, certain ETFs showed resilience. Fidelity’s FETH and VanEck’s ETHV registered $10 million in net positive inflows. Meanwhile, major players like BlackRock’s ETHA and Franklin’s EZET reported no activity during the day. Despite this setback, spot Ether ETFs have collectively recorded $2.4 billion in net positive flows since their launch in July.
Broader Market Impacts
The outflows from Ether ETFs coincided with a broader cryptocurrency market downturn. A key factor was the Federal Reserve's decision to cut interest rates for the third time in 2024, fueling inflation concerns. Federal Reserve Chair Jerome Powell also announced further rate cuts for 2025 aimed at dollar stabilization. These developments triggered a sell-off in risk assets, including cryptocurrencies, with the global crypto market capitalization dropping from $3.7 trillion to $3.36 trillion.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, was not immune to these pressures. Over the past 24 hours, its price dropped by over 9%, settling at $3,371. The market capitalization of Ethereum also declined by 8.89%, now at $404 billion. Technical indicators, such as the Relative Strength Index (RSI), suggest a bearish outlook for Ethereum, with a current reading of 40 indicating strong downward momentum.
Holder Sentiments Amid Decline
Despite the decline in Ethereum's price and market cap, data reveals that the majority of Ethereum holders remain profitable. According to insights from IntoTheBlock, 81% of ETH holders are “in the money,” meaning their holdings are valued above the price at which they were acquired. Around 16% of holders are at a loss, while 3% are at breakeven levels.
The Ethereum market has seen considerable growth in 2024, spurred by rising prices and regulatory developments. However, the recent downturn highlights the volatility that remains inherent in the cryptocurrency market, even for established assets like Ethereum.
