TLDR
- U.S. spot Ether ETFs saw a net inflow of $26.7 million on August 1, 2024.
- BlackRock’s iShares Ethereum Trust (ETHA) led inflows with $89.6 million.
- Grayscale’s Ethereum Trust (ETHE) has seen over $2 billion in outflows since conversion to a spot ETF.
- ETH price has fallen 8.5% since the launch of spot ETFs, trading at $3,168.
- Spot Bitcoin ETFs reported a total daily net inflow of $50.64 million on the same day.
The newly launched U.S. spot Ethereum exchange-traded funds (ETFs) are showing mixed results in their early days of trading.
On August 1, 2024, these ETFs recorded a net inflow of $26.7 million, indicating growing interest from investors. However, this positive flow was overshadowed by continued outflows from the Grayscale Ethereum Trust (ETHE).
BlackRock’s iShares Ethereum Trust (ETHA) led the inflows with $89.6 million on August 1.
This strong performance from one of the world’s largest asset managers suggests that institutional investors are beginning to embrace Ethereum through regulated investment vehicles.
However, Grayscale’s Ethereum Trust, which converted from a trust structure to a spot ETF, has faced significant challenges. Since its conversion, ETHE has experienced outflows totaling over $2 billion.
This represents more than 22% of the fund’s initial value before the conversion. The substantial outflows from ETHE have been a major factor affecting the overall performance of Ethereum ETFs.
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
The price of Ethereum (ETH) has also felt the impact of these market movements. Since the launch of the spot ETFs on July 23, ETH’s price has fallen by 8.5%, trading at $3,168 as of the latest data.
This decline suggests that the market is still adjusting to the new investment products and their effects on supply and demand.
Some analysts believe that the outflows from Grayscale’s fund may soon slow down. Mads Eberhardt, a senior analyst at Steno Research, suggested that a reduction in outflows could serve as a positive indicator for ETH prices in the near future.
The spot Bitcoin ETF market, which launched earlier this year, continues to see activity. On the same day, August 1, the 12 spot Bitcoin ETFs in the U.S. reported a total daily net inflow of $50.64 million.
Grayscale’s Bitcoin Mini Trust, a new offering, led with $191.13 million in inflows, while BlackRock’s IBIT saw inflows of $25.9 million.
It’s worth noting that the Bitcoin ETF market also saw some outflows, with Grayscale’s GBTC experiencing $71.33 million in outflows. This suggests that investors are actively rebalancing their portfolios across different crypto ETF offerings.
The total daily trading volume for Bitcoin ETFs reached approximately $2.91 billion on August 1, showing a significant increase from the previous day’s $1.37 billion.
Since January, spot Bitcoin products have accumulated a total net inflow of $17.74 billion, demonstrating sustained investor interest in cryptocurrency ETFs.
