Grayscale’s Ethereum Trust ETF (ETHE) recently endured a single-day outflow of $31.01 million, marking a return to negative flow rates after a brief period of stability. The latest outflow trend brings the total to a concerning $2.327 billion for ETHE.
Up to this point, U.S. spot Ethereum ETFs have failed to match the performance of their Bitcoin-based equivalents. The consistent outflows from Grayscale’s ETHE have dampened the cumulative net inflows across the nine available ETH exchange-traded funds.
Daily performance of ETH ETFs. Source: Farside Grayscale’s Ethereum Trust ETF’s performance over the last few days
The sudden change in ETHE’s negative flows comes after a day with no outflows on August 12, achieving a significant milestone since its launch. This temporary relief was short-lived, marking the fifth time a reversal in flows had occurred since ETHE was introduced on July 23.
Grayscale’s Ethereum Mini Trust ETF recently saw a day with no outflow, maintaining an overall inflow of $221 million. This consistency stands out amidst the market’s ups and downs.
The market fluctuations coincide with increased activity on Ethereum and its layer 2 networks. Despite the challenges faced by ETHE, other Ethereum spot ETFs are performing well.
The overall ETF market shows positive signs
While Grayscales ETF experienced negative flow, the overall Ethereum spot ETF market showed positive movement on August 14.
BlackRock’s ETHA fund is close to reaching the $1 billion mark in inflows, while Fidelity’s FETH has gained a total of $351 million. Following closely is Bitwise’s ETHW fund with $302.5 million in inflows and Grayscales Mini Ethereum Trust (ETH) with $220.5 million. VanEcks ETHV and Franklin Templeton’s EZET have also posted strong performances, reaching $64.8 million and $35.3 million, respectively.
The latest data shows that the total net asset value of Ethereum spot ETFs is at over $7.6 billion, with an ETF asset ratio of 2.4%. Despite these numbers, there has been an outflow of $377 million for Ethereum spot ETFs. Since the introduction of U.S.-based spot Ethereum ETFs a couple of days ago, there has been a decrease in inflows of $405.94 million.
Invesco’s QETH and 21Shares’ CETH have demonstrated strong movements, accumulating gains of $15 million and $10.8 million each. Notable players in the ETF arena, such as BlackRock, Fidelity, and Bitwise, are also prominent figures in the spot bitcoin ETF market, holding top positions in both BTC and ETH asset holdings.
Analysts have observed the dwindling outflows from ETHE as one of the primary bullish catalysts for the price of Ether in the near future. They believe that ETH’s price could chart a similar course to Bitcoin in the wake of its spot ETF approvals, which was also derailed by heavy outflows from Grayscale Bitcoin Trust (GBTC).
