Diverse Trends Emerge in Spot Ether ETFs Amidst Grayscale's Significant Outflows

04. Aug 2024 Posted by Bailey S. on News

The United States-based spot Ether exchange-traded funds (ETFs) witnessed significant movements on August 2, with notable outflows from Grayscale's Ethereum Trust (ETHE), totaling $2.1 billion. This data, sourced from SoSoValue, highlighted that the overall net outflows from spot Ether ETFs on that day surpassed $54 million, with ETHE alone accounting for a single-day net outflow exceeding $61 million.

Grayscale’s Ethereum Trust ETF Faces Declines

Since its inception in 2017, Grayscale's Ethereum Trust ETF has been a market leader, providing investors with a means to gain exposure to Ethereum without directly purchasing or storing the cryptocurrency. However, despite its prominence, ETHE has recently experienced substantial outflows. Interestingly, other spot Ether ETFs are showing varying trends. The Grayscale Ethereum Mini Trust ETF (ETH) reported no outflows, maintaining its net inflows at $201 million.

Positive Inflows for Other Ether ETFs

Contrasting ETHE’s outflows, the Fidelity Ethereum Fund (FETH) reported the most significant net inflows on August 2, adding over $6 million. This influx increased FETH’s total net inflows to $297 million. Similarly, the Franklin Ethereum ETF (EZET) saw positive inflows, with a single-day net inflow of just over $1 million, bringing its cumulative net inflows to $30.6 million.

Overall Market Dynamics

As of August 3, the total net asset value of spot Ether ETFs stands at $8.3 billion. The ETF net asset ratio, which measures the market value of Ether held in ETFs against the total market value of ETH, is currently at 2.29%. Since their market debut on July 23, cumulative net outflows from spot Ether ETFs have reached $511 million.

Notable Daily Inflows

Interestingly, on August 1, spot Ether ETFs experienced positive daily net inflows. They recorded a net inflow of $26.7 million, driven primarily by an $89.6 million inflow into BlackRock’s iShares Ethereum Trust (ETHA).

Current ETH Market Performance

As of publication, Ethereum (ETH) is trading at $2,900, reflecting a decline of approximately 6.1% since the launch of these ETFs.

In summary, while Grayscale's spot Ether ETF has seen significant outflows, other ETFs in the market are displaying positive trends, indicating a diverse and dynamic landscape for Ether investments.