Ethereum Spot ETFs See $152M in Outflows on Day 3, Grayscale ETHE Bleeds $346M

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

July 26, 2024

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US-based spot Ethereum exchange-traded funds (ETFs) experienced mixed flows on their third day of trading, mainly due to significant outflows from Grayscale’s Ethereum Trust.

Seven of the eight newly launched spot Ether ETFs saw $152m in combined outflows on day three, according to SoSoValue data.

BlackRock’s iShares Ethereum Trust ETF and Grayscale’s Ethereum Mini Trust were the top performers, attracting $70.93 million and $28.09 million, respectively.

Following behind, the Fidelity Ethereum Fund (FETH) and Bitwise’s Ethereum ETF (ETHW) attracted net inflows of $34.32m and $16.34m respectively.

Grayscale Outflows Weighs on New Ethereum ETFs

The newly launched ETFs faced headwinds due to continued heavy selling pressure from the recently transformed Grayscale Ethereum Trust. This trust saw outflows of $346.2m on the third day alone, bringing the total outflows since its conversion to over $1.15b.

Consequently, existing investors in the Grayscale Ethereum Trust have offloaded more than 10% of the fund’s assets.

Ethereum ETF Trading Volume Contrasts Grayscale Outflows

On their debut trading day, Ethereum ETFs collectively achieved over $1b in trading volume.

Despite strong inflows into the newly launched Ethereum ETFs, the Grayscale Ethereum Trust suffere $485m in redemptions. According to JPMorgan, this outflow was likely due to investors opting for cheaper alternatives or taking advantage of the ETF conversion to profit from increased liquidity compared to the previous trust format.

Ethereum last traded 1.8% higher on the day at $3,247.