The Mystery of the Lack of Demand for ETH: What's the Reason for the Underperformance of Ether ETFs After Listing?
Following the launch of the Spot Ether ETF in the US, the ETH price has failed to break through the $3,400 resistance level and has seen a lukewarm response from the Spot Ether ETF market as a result of large outflows from Grayscale, which has resulted in the price of ETH dropping by 4.05 per cent since the launch. According to Sosovalue, overall ETF net inflows totalled negative $439.64 million.
Meanwhile, withdrawn trades of ETH on exchanges have decreased significantly since March, indicating a lack of demand. Analysts point to high estimated leverage as a possible factor contributing to ETH price volatility. Additionally, Coinbase data shows that the Coinbase Premium Index for ETH continued to decline in the second quarter of 2024, further indicating a lack of buying pressure from U.S. investors, leading to a decrease in spot demand.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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