Ethereum (ETH) ETF 9-Day Outflow Ends...Investor Sentiment Reverses from 16 to 25

▲ Ethereum (ETH)

As Ethereum (Ethereum, ETH) broke its 9-trading-day streak of ETF fund outflows, frozen cryptocurrency investor sentiment revived, and momentum for a rebound re-emerged.

According to FXLeaders, a financial market specialized media outlet, on July 4 (local time), the total cryptocurrency market capitalization increased by 1.37% to $2.17 trillion. The Crypto Fear & Greed Index also rose from 16, indicating extreme fear, to 25, the fear stage. FXLeaders analyzed that the trend of recovering market confidence supported Ethereum's strength.

The slowdown in the US job market also boosted the cryptocurrency market. New US employment in June was 57,000, significantly below market expectations of 110,000. The dollar index continued its weakness around 100.85, and FXLeaders explained that sluggish economic indicators, which lowered the likelihood of interest rate hikes and put pressure on the dollar, had a favorable effect on the cryptocurrency market.

Changes were also detected in institutional fund flows. US spot Ethereum ETFs attracted approximately $44 million in new funds over two days, after ending nine consecutive trading days of net outflows. Of this, about $29.7 million flowed into BlackRock's Ethereum fund, and on July 2, approximately $29 million flowed into spot Ethereum ETFs, marking two consecutive days of net inflows.

Since its launch in 2024, the cumulative net inflow into US spot Ethereum ETFs has exceeded $10 billion, and BlackRock's fund's cumulative inflow has also surpassed $11 billion. However, FXLeaders noted that the recent inflow volume is still small compared to typical ETF trading activity, evaluating that investor sentiment is in a gradual improvement phase rather than a rapid recovery.

The market's next focus is on the US Federal Open Market Committee (FOMC) minutes and weekly initial jobless claims. FXLeaders pointed out that these could provide additional clues to gauge the Federal Reserve's next interest rate decision, and that dollar trends and the continued inflow of funds into spot Ethereum ETFs are key variables for the recovery of cryptocurrency investor sentiment.

[Article Key Summary]

-US spot Ethereum ETFs ended 9 consecutive trading days of net outflows and attracted approximately $44 million in new funds over two days.

-The Crypto Fear & Greed Index rose from 16 to 25, and the total market capitalization increased by 1.37% to $2.17 trillion.

-New US employment in June was only 57,000, with dollar weakness and the return of ETF funds cited as major reasons for Ethereum's rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*