Ethereum ETFs Outflows Surpass $100 Million
26 Jul, 2024 ● Crypto News
United States-based spot Ethereum exchange-traded funds (ETFs) saw net outflows of $113.3 million on their second trading day, mainly due to significant outflows from Grayscale’s Ethereum Trust.
Seven of the eight newly launched spot Ether ETFs recorded net inflows on the second day of trading.
Leading the inflows were the Fidelity Ethereum Fund (FETH) with $74.5 million and the Bitwise Ethereum ETF (BITW) with $29.6 million.
BlackRock’s iShares Ethereum Trust (ETHA), which had the highest inflows on July 23, attracted only $17.4 million from investors on July 24.
The new ETFs were negatively impacted by continued heavy selling from the recently converted Grayscale Ethereum Trust (ETHE), which experienced $326.9 million in outflows.
Grayscale launched ETHE in 2017 to allow institutional investors to purchase ETH, but it imposed a six-month lock-up period on all investments.
Since its conversion to a spot Ether fund on July 22, investors have been able to sell their ETH more easily.
In the two days following its conversion, ETHE has seen $811 million in outflows, indicating that existing investors have sold off just over 9% of the fund’s holdings.
Spot Bitcoin ETFs recorded cumulative net outflows for six out of their first 10 trading days, with many attributing these outflows to the Grayscale Bitcoin Trust ETF.
ETH is trading at $3,172 at the time of publication, down over 6.8% in the last 24 hours and 7.4% over the past week, according to TradingView data.
Ether’s declining price action occurred amid a broader sell-off in the equities market, with the S&P 500 closing down 2.3% on July 24.
Notably, ETH fell more sharply compared to Bitcoin, which only declined by 2.6%.
This aligns with Kaiko analyst Will Cai’s prediction that ETH’s price could be particularly “sensitive” to inflows following the launch of the ETFs.
Grayscale’s ETHE experienced $484.4 million in outflows on its first day as a spot Ether ETF. However, strong inflows across the other eight products resulted in cumulative net inflows of $106.6 million.
Sources:
https://cointelegraph.com/news/ethereum-etfs-post-113-million-outflows-day-two-trading
