Ethereum Spot ETF: The Grayscale Ethereum Trust (ETHE) has been a persistent source of outflows, which has led to very little investment in U.S. spot Ethereum ETFs. An $89.6 million inflow into BlackRock’s iShares Ethereum Trust (ETHA) was the main driver of a net inflow of $26.7 million into Ether ETFs on August 1, according to data from SoSoValue. On the flip side, $78 million left Grayscale’s Ethereum Trust that day, increasing the total amount stolen from the fund to a little over $2 billion since it became a spot ETF.
Grayscale’s ETH ETF Sees Outflows
The ETHE token, issued by Grayscale, was initially a trust that gave institutional investors access to Ether, unlike the other eight spot Ether ETFs that debuted on July 23. As of August 1, withdrawals had surpassed 22% of the initial fund value despite ETHE holding $9 billion in Ether before its conversion.
According to Mads Eberhardt, a senior analyst at Steno Research, Grayscale’s ETHE might see a reduction in its substantial outflows over the weekend. He suggested that a reduction in withdrawals would be a positive sign for the price of ETH.
Then it’s all uphill,” Eberhardt said in a post on X from July 30. Even while the net outflow of Ethereum ETFs has not yet subsided, it is quite probable that it will do so this week. As soon as it happens, things will only get better.
The price of ETH would be “sensitive” to inflows into spot products, according to Will Cai, head of indexes at Kaiko, who commented on July 23. According to TradingView data, ETH has fallen 8.5% since the ETFs were created, and its current price of $3,168 reflects this sensitivity.
Spot Bitcoin ETFs See $50M in Inflows
Contrarily, Thursday saw 12 U.S. spot Bitcoin ETFs bring in $50.64 million. Net inflows totalling $191.13 million were led by Grayscale’s Bitcoin Mini Trust, which started trading on Wednesday, according to statistics from SoSoValue. The next one was BlackRock’s IBIT, which received $25.9 million.
Despite these inflows, five US funds had net withdrawals on Thursday, with $71.33 million leaving Grayscale’s GBTC. The net outflow for Fidelity’s FBTC was $48.4 million, while the ARKB and ARK Invest funds lost $22.42 million.
Net outflows were also reported by Bitwise and VanEck funds, while the other five funds from issuers like Valkyrie showed no movements at all. Following a day of $1.37 billion in trading on Wednesday, Thursday saw a total of around $2.91 billion for the 12 Bitcoin ETFs.
The net inflow to spot Bitcoin products since January is $17.74 billion. The Block’s Bitcoin ETF Tracker shows that despite these inflows, the two most prominent spot Bitcoin ETFs—GBTC by Grayscale and IBIT by BlackRock—traded down roughly 3% on Thursday.
According to reports, there is still a lot of interest in investing in digital assets, as funds have been flowing into the market for four weeks running. Inflows into the industry hit a new high of $20.5 billion so far this year, thanks to a $245 million infusion last week.
There has been a consistent influx of capital into Bitcoin products. Inflows into Bitcoin reached a record high of $519 million last week, increasing the total to $3.6 billion for the month and $19 billion for the year thus far.
