On Monday, U.S. spot Ethereum exchange-traded funds (ETFs) saw notable net outflows of $79.21 million, marking the largest daily withdrawal since July 29. The decline was primarily driven by the Grayscale Ethereum Trust (ETHE), which alone accounted for $80.55 million in outflows, representing its biggest drop since July 31, according to data from Sosovalue.
Interestingly, ETHE was the only spot Ethereum ETF to report outflows on Monday. In contrast, Bitwise’s ETHW ETF recorded a modest inflow of $1.34 million, while the other seven spot Ethereum ETFs remained stable with no changes in their flows. Overall, the total trading volume for all nine Ethereum ETFs reached $167.35 million, up from $139.47 million on Friday.
Bitcoin ETFs Show Modest Inflows Amid Ethereum Outflows
While Ethereum ETFs faced outflows, U.S. spot Bitcoin ETFs enjoyed modest inflows of $4.56 million on Monday, continuing a three-day streak of positive flows. Fidelity’s FBTC led the way with $24.93 million in net inflows, followed by BlackRock’s IBIT with $11.54 million and Grayscale’s Bitcoin Trust (GBTC), which logged $8.42 million in net inflows. However, GBTC also reported significant outflows of $40.33 million after two days of inactivity.
The total trading volume for the 12 spot Bitcoin ETFs decreased to $949.72 million on Monday, down from $980.57 million on Friday.
A Turnaround in Digital Asset Investment Products
Last week saw a notable reversal in digital asset investment products, with inflows reaching $436 million following a prolonged outflow period totaling $1.2 billion. This shift was largely influenced by changing market expectations, particularly regarding a potential 50-basis-point interest rate cut.
October Outlook for Bitcoin and Ethereum
Looking ahead, both Bitcoin and Ethereum are expected to perform strongly in October, according to Ryan Lee, Chief Analyst at Bitget Research. After a challenging September, Bitcoin is projected to reach between $58,000 and $72,000, driven by macroeconomic factors, market indicators, and increased institutional activity.
The Federal Reserve’s recent decision to cut the federal funds rate by 50 basis points to 4.75%-5% signifies a formal shift in monetary policy aimed at injecting liquidity into the market. This change has already contributed to a short-term rise in both the U.S. stock and crypto markets.
Lee also noted that after adjustments in the second and third quarters, Bitcoin presents a favorable opportunity for accumulation. September’s negative funding rates in the Bitcoin futures market, caused by sell-offs leading to the liquidation of long futures positions, coupled with the Fear & Greed Index hovering around “Extreme Fear,” suggest a high probability of a rebound.
For Ethereum, an optimistic forecast anticipates prices between $2,200 and $3,400. The Federal Reserve’s dovish stance on interest rates could enhance Ethereum’s appeal as a “yield-generating” asset, particularly as its staking yield hovers around 3.5%. Additionally, the upcoming launch of Eigenlayer, a significant project within the Ethereum ecosystem, is expected to attract substantial market capital, potentially boosting ETH’s performance.
The recent surge in interest for Ethereum-based meme coins, like Neiro, has also contributed to a wealth effect, encouraging more users to buy ETH and engage in early-stage trading.