Ethereum ETF’s had a very tough Friday which saw them post outflows of $11.3 million, the first of this size in over a year. At the same time ETH fell below the $2,400 mark, which sent markets into a frenzy, exemplifying the Ethereum price drop. BlackRock’s ETHA fund led the pack in terms of redemptions which saw $19.7 million taken out of it, which is out of the total $4.03 billion in assets they manage.
In that regard Bitcoin ETF’s saw to a continuous growth reporting in fact for the 9th straight day of net inflows. The issue of the institutional difference between Ethereum and Bitcoin is growing and Friday was the tell amid the price drop of Ethereum.
Triggers Liquidations And Wallet Transfers
Ethereum saw a sale off of which in turn caused a 24 hour wave of liquidations for a total of $170 million -$157 million of that from long positions. At the same time a large-scale outflow of ETH into centralized exchanges during this Ethereum price drop.
Adding to the tension according to Glassnode data Ethereum’s “Liveliness” index has gone up to 0.69 which in turn indicates that dormant wallets are becoming active. This is also a bearish sign as long term holders are putting their assets back into play which may be a sign they are going to sell amid the price drop.
Despite that which was put forth as evidence to the contrary, a “Golden Cross” played out last week in which the 50-day moving average crossed above the 200 day average this is usually a good indicator of positive long term action which brought with it some relief in the turbulent climate.
Ethereum Price Drop Highlights Institutional Hesitation
Ethereum saw a large-scale drop in price which in turn sent out a simple yet strong message to the market. Institutions may no longer be as present as before but they do seem to be changing their stand.
Still Ethereum ETFs report $840M in net inflows this month which is a sign that some investors are putting money back in at current prices after the drop in Ethereum’s price. Experts put this forward as a short term adjustment instead of a long term shift away from Ethereum.
Meanwhile, Bitcoin ETF’s have hit $46.7 billion in terms of total investment and they make up for 25% of global BTC trade. Institutions may be to a degree of conservation putting that capital into the crypto asset which has proven to have greater market presence.
