Ethereum Spot ETFs: For the fourth day in a row, spot Ethereum ETFs saw a net outflow of $98.3 million on July 29. According to data from So Value, the Grayscale Ethereum Trust (ETHE) saw a significant outflow of $210 million in a single day. The Grayscale Ethereum Mini Trust (ETH), on the other hand, received $4.9 million.
Even if other exchange-traded funds (ETFs) had mixed performance, 58.2 million dollars went into BlackRock’s iShares Ethereum Trust (ETHA) and 24.8 million into Fidelity’s Ethereum Fund (FETH).
The Ethereum spot ETF saw a net withdrawal of $98.2856 million on July 29 and maintained that trend for four days. In a single day, $210 million left Grayscale ETF ETHE, $4.8967 million entered Grayscale mini ETF ETH, and BlackRock ETF ETHA saw a… This is according to Wu Blockchain (@WuBlockchain).
Ether ETFs See $340M in Outflows in First Week
In the first week of trading, $340 million was pulled out of the nine exchange-traded funds that held Ethereum. At this time, many investors shifted their money from high-fee legacy products to ETFs.
According to Bloomberg data, eight newly licensed Ether ETFs raised $1.17 billion over four trading days ended July 26 despite these outflows. A total of $442 million, $266 million, and $219 million came into funds managed by BlackRock, Bitwise, and Fidelity, respectively.
On the other hand, $1.5 billion was lost by Grayscale’s previously established Ethereum Trust. Withdrawal patterns are similar to those observed with the Bitcoin Grayscale Trust before the January introduction of spot Bitcoin ETFs. The sale of Grayscale’s fund seems to be seen by investors as an opportunity to exit the company strategically.
The “Ethereum Mini Trust,” a new product from Grayscale, has a current charge of 0% instead of the main trust’s 2.5%. Investors like less expensive solutions, as this new offering garnered $91 million in its first week.
Since these ETFs went live on July 23, the price of Ether has dropped 4.6% to about $3,331. This drop was timed to coincide with the debut of the ETFs. Despite its recent decline, Ether is still the second-largest cryptocurrency by market capitalization, behind only Bitcoin; it is up about 46% for the year.
Digital Asset Products Continue Inflow Streak
Interest in the digital asset investment landscape is high, and it has been running for four weeks, with flows remaining positive. Inflows into the industry hit a new high of $20.5 billion this year, thanks to a $245 million infusion last week. There has been a consistent influx of capital into Bitcoin products.
Bitcoin received $519 million in a week, pushing its monthly inflow to $3.6 billion and its year-to-date inflow to $19 billion. Anxieties over Bitcoin’s potential status as a strategic reserve asset have contributed to speculation that the current political atmosphere in the US is driving the investment boom. Investor confidence in Bitcoin has also increased due to the widespread belief that the Federal Reserve may lower interest rates in September 2024.
According to a recent note by Shubh Varma, CEO and Co-founder of Hyblock Capital, the market dynamics surrounding Bitcoin have been boosted by former President Donald Trump’s positive comments about the cryptocurrency.
“Significantly shifting the narrative surrounding Bitcoin and its potential future, such a pro-crypto stance from a major political figure was almost unimaginable just two years ago,” Varma said.
