Ethereum Spot ETFs See Meager Inflows as Grayscale Outflows Persist
U.S. spot Ether exchange-traded funds (ETFs) have seen meager inflows as outflows from the Grayscale Ethereum Trust (ETHE) continue to persist.
On August 1, Ether ETFs recorded a net inflow of $26.7 million, driven by an $89.6 million inflow into BlackRock’s iShares Ethereum Trust (ETHA), according to data from SoSoValue.
Conversely, Grayscale’s Ethereum Trust experienced outflows of $78 million on the same day, bringing the total outflows from the fund to just over $2 billion since its conversion to a spot ETF.
Unlike the eight other spot Ether ETFs launched on July 23, Grayscale’s ETHE was originally a trust providing institutional investors with exposure to Ether.
Prior to its conversion, ETHE held $9 billion in Ether, but outflows have now exceeded 22% of the initial fund value as of August 1.
Mads Eberhardt, a senior analyst at Steno Research, suggested that the significant outflows from Grayscale’s ETHE might diminish by the end of the week.
He indicated that a slowdown in outflows could serve as a bullish indicator for ETH prices.
“When it does, it’s up only from there,” Eberhardt wrote in a July 30 post on X.
The Ethereum ETF net outflow is yet to subside, but it is likely that it will happen this week. When it does, it's up only from there. pic.twitter.com/mJqbcyUTp5
— Mads Eberhardt (@MadsEberhardt) July 29, 2024
On July 23, Will Cai, head of indexes at Kaiko, remarked that ETH’s price would be “sensitive” to inflows into spot products.
Reflecting this sensitivity, ETH was trading at $3,168 at the time of publication, having dropped 8.5% since the ETFs were launched, according to TradingView data.
Meanwhile, the 12 spot Bitcoin ETFs in the U.S. reported a total daily net inflow of $50.64 million on Thursday.
Grayscale’s
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