Ether ETF Outflows Ease as Grayscale Sees Reduced Activity

• Spot Ether ETFs attracted over $1.5 billion in inflows within two weeks, while Grayscale Ethereum Trust saw reduced outflows.
• ETHE’s initial outflows dropped from $484 million to as low as $78 million, reflecting a significant market shift.
• The BlackRock iShares Ethereum Trust leads with $712.9 million in inflows, followed by Fidelity’s FETH and Bitwise’s ETHW funds.

Spot Ether ETFs that were recently launched hosted inflows exceeding $1.5 billion with only two weeks of trade except for the ETF Grayscale that has shown a slowdown. The tide appears to be turning for spot Ether ETFs as outflows from the Grayscale Ethereum Trust (ETHE) slow.

Traders Capitalize on ETHE Discount, Driving Significant Outflows

Sosovalue shows spot Ether ETF hosting inflows for two of the last three days after a sustained run of outflows. The freshly launched funds hosted combined inflows of $33.7 million on July 30 and $26.7 million on August 1.

The optimistic flows coincided with outflows from ETHE falling sharply. After shedding between $327 million and $484 million during its first week of trade as an ETF, the Grayscale Ethereum Trust hosted outflows of between $133.3 million and $78 million over the past three days.

Since their debut on July 23, the assets under management of spot Ether ETFs have declined by $456.4 million. During the same time frame, $2.06 billion has exited ETHE, indicating that $1.6 billion has been redirected into other funds. The substantial outflows from the Grayscale Ethereum Trust are likely due to opportunistic traders who bought ETHE shares at a discount and then capitalized on the profit. In mid-2023, ETHE hit an all-time low, trading at a 47% discount relative to Ether.

Samara Cohen, the CIO of ETF and index investments at BlackRock, the world’s largest asset manager and a spot crypto ETF issuer, described spot Ether ETFs’ debut week as “strong,” emphasizing the funds’ high trade volumes.

BlackRock iShares Ethereum Trust (ETHA) is the fastest-growing Ether ETF with cumulative inflows of $712.9 million, followed by Fidelity’s FETH fund with $291 million and Bitwise’s ETHW with $288 million.

Spot Ether ETFs: Assessing Bullish vs Bearish Trends

CoinMarketCap shows that Ethereum initially surged from $3,096 to above $3,200, signaling a bullish trend early in the trading session. This rise reflected positive market sentiment and strong buying interest. During the day, the price were between the $3,100 to $3,150 range, showing steady bullish support.

However, a decline occurred later in the day, with Ethereum’s price dropping to $3,029. This sudden drop suggests a significant bearish move, likely driven by increased selling pressure. The day ended with a closing price lower than the opening price, indicating that bearish forces took control by the end of the trading session.

• Grayscale Leads the ETH ETF On-Chain Leaderboard with 2,393,495 ETH in the Grayscale ETHE Ethereum Trust
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• Ethereum ETFs Experience Significant Divergence in Fund Flows as July Closes with Notable Outflows and Inflows
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