Bitcoin and Ethereum ETFs Return to Posting Positive Flows, Log $77M in Combined Inflows

• Grayscale’s primary Bitcoin and Ethereum ETFs have shed a combined $21 billion in outflows.
• Bitcoin and Ethereum ETF flows have
• Grayscale’s Bitcoin Mini Trust launched on July 31 and has seen over $200 million in net inflows.

U.S. spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) both saw positive net inflows despite mildly bearish market conditions.

Though a majority of the funds remain in the green, Grayscale’s ETF outflows are now totaling $21 billion but are the firm’s mini funds soaking up the losses?

Bitcoin ETFs

As per data from SoSoValue , Bitcoin ETFs posted a modest $50.64 million in total net inflows on Aug. 1, 2024.

Grayscale’s newly launched Mini Bitcoin Trust (BTC) posted net inflows of $191.13 million on its second day of trading. The fund, which carries a significantly lower fee of 0.15% compared to its primary fund, which has 1.5%, also saw $18 million of net inflows when it debuted on July 31, 2024.

BlackRock iShares Bitcoin Trust (IBIT) saw one of its quietest trading days yet, posting a modest $25.9 million in net inflows and being the only other fund in the green.

As for those in the red, Fidelity Wise Origin Bitcoin Fund (FBTC) saw a hefty $48.4 million leave their funds. The Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) both saw outflows just exceeding $20 million. Meanwhile, the VanEck Bitcoin Trust (HODL) dropped just $3.58 million.

In typical fashion, the Grayscale Bitcoin Trust (GBTC) saw $71.33 million in outflows, bringing the total exits to over $19 billion. The remaining five funds saw neutral flows.

Despite the muted flows, trading volumes were high. On Aug. 1, trading volumes were exceptionally high at $2.91 billion. Notably, BlackRock’s IBIT soaked up a majority of this activity, with the value traded exceeding $1.3 billion.

Ethereum ETFs

According to SoSoValue , Ethereum ETFs saw their third day of net inflows since debut, posting a total of $26.75 on Aug. 1, 2024.

As for Aug. 1 gainers, BlackRock’s iShares ETF (ETHA) was back on top with a solid $89.65 million in net inflows, taking up the vast majority of the day’s flows.

The only other two funds in the green were the Fidelity Ethereum Fund (FETH), which bagged a humble $11.7 million, and Bitwise’s Ethereum ETF (ETHW), which had $3.35 million in net inflows. Five other funds, including Grayscale’s Ethereum Mini Trust (ETH), posted neutral flows.

This leaves just one fund in the red, the Grayscale Ethereum Trust (ETHE), which saw $77.95 in outflows for the eighth consecutive day. The fund’s net outflows have now exceeded $2 billion.

Grayscale’s Mini Flippening?

With all of that said Grayscale’s “mini fund” project appears to be working to some degree. Yes, while they are copies of their larger “parent” funds, their fees are significantly lower than those of the larger funds.

For example, Grayscale’s ETHE has a 2.5% fee, but the firm simultaneously launched a mini fund with a 0.15% fee alongside it. While it hasn’t entirely offset the $2.06 billion in outflows from ETHE, the mini fund is gaining traction.

It seems that the firm’s decision to launch a cheaper mini fund was informed by lessons learned from Grayscale’s Bitcoin ETF launch, which was followed by significant outflows averaging hundreds of millions of dollars per day.

Despite having a 1.5% fee, GBTC proved unfavorable for investors, resulting in over $19 billion in net outflows to date. In total, Grayscale’s primary funds have collectively lost $21.07 billion, while its mini funds have netted $409.12 million in inflows.