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.

Grayscale’s ETH ETF Sees Outflows

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.

Spot Bitcoin ETFs See $50M in Inflows

Meanwhile, the 12 spot Bitcoin ETFs in the U.S. reported a total daily net inflow of $50.64 million on Thursday.

Grayscale’s Bitcoin Mini Trust, which began trading on Wednesday, led net inflows with $191.13 million, based on data from SoSoValue.

This was followed by BlackRock’s IBIT, which saw inflows of $25.9 million.

However, these inflows were countered by net outflows from five U.S. funds, including Grayscale’s GBTC, which saw $71.33 million leave the fund on Thursday.

Fidelity’s FBTC logged net outflows of $48.4 million, and Ark Invest and 21Shares’ ARKB saw $22.42 million in outflows.

Funds from Bitwise and VanEck also reported net outflows, while the remaining five funds from issuers such as Valkyrie recorded zero flows.

On Thursday, the total daily trading volume for the 12 Bitcoin ETFs amounted to approximately $2.91 billion, compared to $1.37 billion on Wednesday.

Since January, spot Bitcoin products have accumulated a total net inflow of $17.74 billion.

Despite these inflows, the two largest spot Bitcoin ETFs—BlackRock’s IBIT and Grayscale’s GBTC—both traded down about 3% on Thursday, according to The Block’s Bitcoin ETF Tracker.

As reported, 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.

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