Ethereum spot ETFs experienced a significant net outflow of $98.3 million on July 29, marking the fourth consecutive day of outflows.
The Grayscale Ethereum Trust (ETHE) experienced a substantial single-day outflow of $210 million, data from SoSoValue shows.
Conversely, the Grayscale Ethereum Mini Trust (ETH) attracted $4.9 million in inflows.
Other ETFs showed mixed results, with BlackRock’s iShares Ethereum Trust (ETHA) seeing an inflow of $58.2 million, while Fidelity’s Ethereum Fund (FETH) garnered $24.8 million.
Ethereum spot ETF had a total net outflow of $98.2856 million on July 29, and continued to have net outflows for 4 consecutive days. Grayscale ETF ETHE had a single-day outflow of $210 million, Grayscale mini ETF ETH had a inflow of $4.8967 million, BlackRock ETF ETHA had a… pic.twitter.com/qicdRSrVUR
— Wu Blockchain (@WuBlockchain) July 30, 2024
Ether ETFs See $340M in Outflows in First Week
The nine ETFs holding Ethereum experienced outflows totaling $340 million during their first week of trading.
This was a period marked by investor withdrawals from high-fee legacy products converted to exchange-traded funds.
Despite these outflows, eight new Ether ETFs, approved by the U.S. Securities and Exchange Commission, amassed $1.17 billion over four trading days ending July 26, according to Bloomberg data.
The most substantial inflows were into funds from BlackRock, Bitwise, and Fidelity, which attracted $442 million, $266 million, and $219 million, respectively.
In stark contrast, Grayscale’s established Ethereum Trust saw a loss of $1.5 billion.
The pattern of withdrawals mirrors previous investor behavior seen with the Bitcoin Grayscale Trust when spot ETFs for Bitcoin were introduced in January.
Investors appear to view the conversion of Grayscale’s fund as a strategic exit point.
Adding to its offerings, Grayscale launched the “Ethereum Mini Trust,” boasting a current fee of 0% compared to the 2.5% fee of the primary trust.
This new product managed to attract $91 million in its initial week, indicating a preference among investors for lower-cost options.
The launch of these ETFs has coincided with a decline in Ether’s price, which fell by 4.6% to around $3,331 since the ETFs began trading on July 23.
Despite this recent dip, Ether remains up by approximately 46% for the year, maintaining its position as the second-largest cryptocurrency by market capitalization after Bitcoin.
Digital Asset Products Continue Inflow Streak
The digital asset investment landscape continues to draw substantial interest, with inflows maintaining a positive trajectory for the fourth consecutive week.
Last week, the sector saw an influx of $245 million, with year-to-date (YTD) inflows reaching a record $20.5 billion.
Bitcoin products have continued to attract significant investments.
Last week alone, Bitcoin saw inflows amounting to $519 million, bringing its month-to-date inflows to $3.6 billion and YTD inflows to an unprecedented $19 billion.
The surge in investment is believed to be influenced by the political climate in the United States, particularly with comments from the election campaign suggesting Bitcoin could be considered a strategic reserve asset.
Additionally, the anticipation of a potential rate cut by the Federal Reserve in September 2024 has bolstered investor sentiment towards Bitcoin.
Shubh Varma, CEO and Co-founder of Hyblock Capital, said in a recent note that Bitcoin’s market dynamics have recently been invigorated by former President Donald Trump’s bullish remarks on the cryptocurrency.
“Such a pro-crypto stance from a major political figure was almost unimaginable just two years ago, signaling a significant shift in the narrative surrounding Bitcoin and its potential future,” Varma said.
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