The launch of spot Ether exchange-traded funds (ETFs) in the United States has brought a significant boost to the digital asset market. According to a recent report from CoinShares, these new Ether ETFs have attracted an impressive $2.2 billion in inflows, marking a 542% increase in Ether exchange-traded products (ETPs).

Mixed results for Grayscale’s Ethereum Trust

While the launch of the spot Ether ETFs has been a success, Grayscale’s Ethereum Trust has experienced mixed results. The trust saw net outflows of $285 million, despite its substantial $1.5 billion in total assets. This shows that while new products are gaining traction, some existing products are seeing a decline in investor interest.

Bitcoin has also enjoyed strong inflows, with $3.6 billion entering over the past month. This brings Bitcoin’s year-to-date total to a historic $19 billion. CoinShares analysts believe this surge is driven by speculation about the upcoming U.S. elections and the potential for Bitcoin to be used as a strategic reserve asset. Additionally, expectations of a Federal Reserve interest rate cut in September have renewed investor confidence in Bitcoin.

The overall digital asset market continues to expand, with total assets under management reaching $99.1 billion. In 2024, total inflows have hit a record-breaking $20.5 billion year-to-date. Trading volumes across all digital assets reached an all-time high in May, spurred by anticipation of the new Ether ETFs. The week of July 22 saw trading volumes peak at $14.8 billion, largely driven by the launch of the Ether ETFs, despite the broader digital asset investment products seeing only $245 million in inflows.

Significant outflows from Ethereum Trust ETF

On July 26, Grayscale’s Ethereum Trust ETF saw significant outflows, with investors withdrawing over $1.5 billion, and net outflows reaching $356 million in a single day. Since the spot Ether ETFs launched on July 23, the newly converted Ethereum Trust ETF has seen over $1.5 billion in withdrawals. In contrast, Grayscale’s Ethereum Mini Trust recorded a positive net inflow of $44.9 million on the same day.

The launch of spot Ether ETFs has marked a major milestone in the digital asset market, drawing significant investor interest and inflows. While some existing products like Grayscale’s Ethereum Trust have seen outflows, the overall momentum in the market remains strong. This indicates a growing interest and confidence in digital assets as investors seek new opportunities in this evolving landscape.