Ether (ETH) experienced a significant decline, falling over 7.5% during the early trading hours in East Asia, with its value hovering above $3,100. This downturn is fueled by mounting concerns over substantial outflows from Grayscale’s recently converted Ethereum Trust ETF (ETHE).

Substantial ETHE Outflows

Market intelligence from SoSoValue indicates that ETHE witnessed a net outflow exceeding $810 million. This trend mirrors the initial weeks of Grayscale’s other major crypto trust, GBTC, which similarly faced heavy outflows following the launch of bitcoin ETFs earlier this year.

Inflows into Other ETH ETFs

Despite the significant outflows from ETHE, other ETH ETFs experienced positive inflows during the Wednesday trading session. BlackRock’s ETHA led with an inflow of $283.9 million, followed by Bitwise’s ETHW with $233.6 million, and Fidelity’s FETH with $145.7 million in inflow.

Market Performance

Over the past month, ETH has seen a 6% decline, though it remains up 72% over the past year. Year-to-date, Ether has outperformed the CoinDesk 20 (CD20)—an index tracking the largest digital assets—with the CD20 up 21.6% compared to ETH’s 35% increase.

Correlation with Nvidia

ETH continues to exhibit a strong correlation with Nvidia (NVDA) stock, which also saw a decline of over 6% today. This correlation between cryptocurrency prices and Nvidia’s stock has been a notable trend throughout the year.