Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Ethereum shows mixed signals as price surges amid ETF outflows

Ethereum shows mixed signals as price surges amid ETF outflows

Cryptobriefing2024/09/27 16:39
By:Cryptobriefing

Key Takeaways

  • Ethereum's weekly fees reached $45 million, the highest since June 10, 2024.
  • Ether ETFs experienced over $79 million in outflows on Monday, the largest since July.

Share this article

Ethereum (ETH) is displaying conflicting market indicators, as on-chain data developments are met with constant outflows from spot Ethereum exchange-traded funds (ETF).

According to IntoTheBlock’s “On-chain Insights” newsletter, ETH’s price surged over 7% in the past week, with addresses “in the money” increasing from 59% to 66%. Additionally, 82% of ETH volume is currently in profit.

Moreover, network activity has seen a significant uptick, with weekly fees reaching $45 million, the highest since June 10, 2024. The Ethereum derivatives market also shows renewed optimism, evidenced by a positive shift in the 30-day moving average of funding rates.

However, these positive developments are contrasted by large outflows from Ether ETFs, which experienced their most substantial withdrawals since July, with over $79 million removed on Sept. 23 alone.

IntoTheBlock analysts highlighted that this outflow suggests a divergence between price movements and investor confidence in Ether’s future outlook.

The mixed signals come as both crypto and stock markets respond similarly to macroeconomic factors, particularly US Federal Reserve decisions. Bitcoin’s correlation with US stocks has reached a two-year high, only surpassed in Q2 2022.

While Ethereum’s network activity and price figures have improved, it still struggles to capture traditional finance investors’ interest compared to Bitcoin’s “digital gold” narrative.

This disparity highlights the complex relationship between crypto markets and traditional finance as the sector continues to evolve.

Bullish developments on the sidelines

Despite the significant outflows, Ethereum has been met with important developments recently.

Financial consulting firm Guggenheim issued $20 million worth of tokenized commercial paper through AmpFi.Digital, a company that uses Ethereum’s infrastructure to offer tokenization services to institutional clients.

Moreover, Visa a nnounced a platform to help banks in tokenizing fiat-backed assets. The Visa Tokenized Asset Platform (VTAP) will also tap Ethereum technology to create digital representations of real-world assets (RWA).

Notably, Ethereum dominates the tokenized US treasuries market. As per RWA.xyz data , over $1.5 billion in tokenized US government securities are issued on Ethereum, which is roughly 70% of this sector’s market cap.

Share this article

0

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.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Whale Sells $5.48M in TRUMP Token, Gains $483K

A crypto whale offloaded 630,339 TRUMP tokens for $5.48M, pocketing nearly $483K in profit at $8.70 per token.Whale Exits TRUMP Token with Nearly Half a Million in ProfitSmart Profit-Taking or Early Exit?Whale Moves as a Market Signal

Coinomedia2025/04/23 23:44
Whale Sells $5.48M in TRUMP Token, Gains $483K

Buy Low, Fly High: Arctic Pablo at $0.000099 Eyes $0.008 Surge, While Fwog And Pudgy Penguins Push Boundaries

Explore Arctic Pablo Coin's presale, Pudgy Penguins' gaming expansion, and Fwog's market trends. Discover the Top New Meme Coins to Invest in April 2025.Arctic Pablo Coin (APC): Staking and RewardsArctic Pablo Coin (APC): Presale Reaches Frostbite CityPudgy Penguins: Expanding into Mobile GamingFwog: Gaining Momentum in the Meme Coin MarketWrapping Up: Arctic Pablo Coin (APC) Stands OutFor More Information:

Coinomedia2025/04/23 23:44
Buy Low, Fly High: Arctic Pablo at $0.000099 Eyes $0.008 Surge, While Fwog And Pudgy Penguins Push Boundaries

Australian Court Overturns License Ruling Against Block Earner, Sides with Fintech in Landmark Crypto Case

In a significant legal win for Australia’s crypto and fintech industry, the Federal Court has overturned a previous ruling that required digital finance firm Block Earner to obtain a financial services license for its discontinued fixed-yield crypto product.

DeFi Planet2025/04/23 21:55
Australian Court Overturns License Ruling Against Block Earner, Sides with Fintech in Landmark Crypto Case

Symbiotic Raises $29 Million to Build Universal Staking Coordination Layer

Symbiotic, a decentralised finance (DeFi) protocol, has secured $29 million in a funding round led by Paradigm and cyber.Fund.

DeFi Planet2025/04/23 21:55
Symbiotic Raises $29 Million to Build Universal Staking Coordination Layer