Key Takeaways:
- Ether ETFs experienced $340 million in net outflows in the opening week, mainly due to $1.5 billion exiting Grayscale’s Ethereum Trust (ETHE).
- New Ether ETFs from BlackRock, Bitwise, and Fidelity saw $1.15 billion in inflows despite the overall outflows.
- Analysts predict ETHE’s assets could be depleted within four weeks at the current outflow rate but expect a rebound based on past trends.
In the opening week of Ether ETFs, there were $340 million in net outflows, driven largely by over $1.5 billion exiting Grayscale’s high-fee Ethereum Trust (ETHE).
This overshadowed the $1.15 billion inflows into newly launched Ether ETF products from BlackRock, Bitwise, and Fidelity.
The nine US ETFs holding the Ethereum cryptocurrency saw outflows of $340 million during their first week of trading https://t.co/czPT05xHXR
— Bloomberg Crypto (@crypto) July 29, 2024
In contrast, Bitcoin funds saw $1 billion in net inflows in their initial days despite outflows from another Grayscale fund.
Analysts predict that ETHE’s assets could be depleted within four weeks at the current outflow rate, but they expect the outflows to taper off soon.
The Ethereum ETF net outflow is yet to subside, but it is likely that it will happen this week. When it does, it's up only from there. pic.twitter.com/mJqbcyUTp5
— Mads Eberhardt (@MadsEberhardt) July 29, 2024
Quinn Thompson and Mads Eberhardt, crypto analysts, noted similarities with past Bitcoin fund behaviors and anticipated a potential rebound in ETHE’s net flows.
About The Author
Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.
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