The historical Spot Ethereum Exchange-Traded Funds (ETFs) are currently seeing a negative sentiment, which is believed to be mimicking the negative trend seen with that of the Spot Bitcoin ETFs on BTC’s price following its inception in January of this year. Their respective ETFs have seen decreased inflows and deteriorating performance, closely mirroring each other as the two most popular cryptocurrencies face downward pressure.

Spot Ethereum ETFs Face Notable Challenge

According to analysts at the Woo X research platform, spot Ethereum ETFs are in a similar downward trend to Bitcoin, indicating the general bearishness of the market. After the inception of the ETH spot ETFs on July 23, Woo X highlighted that the crypto asset saw an 11% reduction in price, falling from $3,500 to a low of about $3,100 simultaneously in just three days.

In addition to the present unfavorable market conditions, the analysts at the firm state that the ETH spot ETFs are confronting an obstacle akin to the one that BTC had previously faced, citing the selling pressure from the largest asset management company, Grayscale.

The platform noted that post the launch of the Bitcoin spot ETFs, BTC also experienced a 20% price drop, falling from about $48,000 to $38,000 in over two weeks due to the selling pressure from Grayscale’s BTC ETF, GBTC.

However, the price later surged from the $38,000 price level to a historic high of $73,000 as Grayscale’s GBTC selling pressure reduced, and the net capital flowing into the funds continued to rise.

In the event that Ethereum witnesses a similar circumstance, Woo X believes the price of ETH could hit the $2,850 mark. Meanwhile, the precise effect will be determined by the selling pressure exerted by Grayscale and the net inflows of the spot ETH ETFs generally.

ETH Spot ETFs Attract Negative Inflows

Investors’ interest around the spot Ethereum ETFs seems to have dived down as the funds after Tuesday’s trading recorded a negative outflow, with millions of dollars seen flowing out from the products.

According to data from the London-based investment management company Farside Investors, the products saw an overall outflow of $47 million. Fidelity ETH ETF (FETH) was the only fund that closed the market on a positive note, attracting about $4.9 million daily inflows.

Other asset management firms funds like Blackrock‘s Ethereum ETF (ETHA), Bitwise ETH ETF (ETHW), 21Shares ETH ETF (CETH), VanEck ETH ETF (ETHV), and Franklin ETH ETF (EZET) closed the market on a negative note with zero inflows. Meanwhile, Grayscale ETH ETF (ETHE) saw another day of outflows reaching about $52.3 million.

This outflow suggests that investors are withdrawing from the products due to the recent price movement of ETH and the general market fluctuations, reflecting a cautious approach as they reassess their exposure to the altcoin.