Simply put
- The Ethereum ETF recorded $184 million in outflows for four consecutive days ending April 30th.
- Bitcoin ETFs also saw inflows of $14.76 million on Thursday, although they lost $476 million over the same period.
- Countless users believe there is a 55% chance that Ethereum will reach $3,000 next, up from 46% on Monday.
Ethereum Exchange-traded funds extended their losing streak to four days Thursday, losing nearly $184 million as geopolitical uncertainty offset record highs in U.S. stocks.
Outflows accelerated on April 29th, with net redemptions in the Ethereum ETF amounting to $87.7 million, the largest single-day outflow since March 26th, according to SoSoValue data. Ethereum ETF cumulative flows are now $11.9 billion, down from a peak of $12.9 billion in mid-January.
Despite the leak, Ethereum’s price rose 2.2% over the same period, trading at $2,313 on Thursday, according to CoinGecko data. This divergence suggests that selling pressure on fund products is not directly linked to spot market weakness.
Owned by Prediction Market Myriad decryption Users believe there is a 55% chance that Ethereum’s next big move will hit $3,000, up from 46% on April 30, according to parent company Dastan.
Why is ETF outflow important now?
The Ethereum ETF’s fourth straight negative day is consistent with broader weakness in crypto investment products. Bitcoin ETFs lost $476 million in the same four-day period ending April 30, with outflows peaking at $263 million on April 27. Cumulative net inflows into Bitcoin ETFs currently stand at $58.1 billion.
The outflows came as traditional markets rose, with the S&P 500 index hitting a new all-time high of 7,271, driven by rising technology revenues.
On the other hand, crude oil prices rose to over $120 per barrel even after the UAE left OPEC. On Myriad, users have a 70% chance that oil prices will move to $120 per barrel next, down from 79% before today.
Geopolitical risks in the Middle East continue to cloud the outlook for risk assets. The conflict between the US and Iran shows no signs of a short-term resolution, energy markets are under stress and inflation expectations remain high. Countless users say there is only a 27% chance that diplomatic talks between the US and Iran will be held by the middle of this month, down from 36% earlier today.
Ethereum and the broader crypto market are following Bitcoin as it looks to reverse losses after the Federal Open Market Committee kept benchmark interest rates between 3.5% and 3.75% for the third time in a row, citing rising inflation due to rising energy prices.
