Ethereum ETF Outflows Continue, $152 Million Exits as Grayscale Leads Losses

• Six out of nine Ethereum ETFs recorded positive inflows.
• Grayscale’s primary ETH ETF has seen $1.16 billion in net outflows since July 23.
• Hashdex has filed for the first index-based spot crypto ETF, comprising BTC and ETH.

U.S. Spot Ethereum (ETH) exchange-traded funds experienced their second day of net outflows, with only one fund bucking the trend of inflows— Grayscale.

Seemingly, Grayscale’s significant outflows are unstoppable, even from its freshly created ETH ETF, which has already lost over $1 billion since its launch.

Ethereum ETFs

As per data from SoSoValue , U.S. Spot Ethereum ETFs posted their second day of net outflows totaling $152.3 million on July 25, 2024. However, it appears once again to have been a day of positive or neutral inflows for everyone except Grayscale.

BlackRock’s iShares ETF (ETHA) led the pack with $70.93 million in net inflows. The Grayscale Ethereum Mini Trust (ETH) also appears to be finding its audience, garnering $58.09 million. Consequently, Fidelity’s Ethereum Fund (FETH) saw modest gains, adding $34.32 million to its balance sheet.

Smaller gainers included Bitwise’s Ethereum ETF (ETHW) with $16.34 million, VanEck’s Ethereum ETF (ETHV), which posted $8 million of inflows, and Invesco Galaxy’s Ethereum ETF (QETH) with $6.24 million.

Both Franklin Templeton’s Ethereum ETF (EZET) and 21Shares Core Ethereum ETF (CETH) saw neutral flows.

The Loss Leader

Bringing the total flows into the negative for the day, Grayscale’s Ethereum Trust (ETHE) shed a sizeable $346.22 million, bringing its cumulative net inflow to -$1.16 billion.

It seems that upon converting to a spot ETF, investors are eager to exit the $9 billion fund and dodge the 2.5% fee in search of greener pastures. However, it is unsure what percentage of these outflows are making their way to Grayscale’s Mini ETF—the smaller and significantly cheaper fund with a 0.15% management fee.

Grayscale will be pleased that it is at least garnering some attention. With plans to roll out a similar “mini” spin-off for its spot Bitcoin ETF, the firm could finally see its net flows balance out in the near future.

A Solid Performance

For the most part, spot Ethereum ETFs are relishing in a rather modest state of success. However, Grayscale’s outflows are disproportionately affecting flow data.

For the rest of the ETFs, inflows have been consistent and solid, albeit muted compared to their Bitcoin (BTC) ETF counterparts. Notably, Spot BTC ETFs saw mostly neutral flows aside from BlackRock’s IBIT, which bagged $70.75 million, and the Grayscale Bitcoin Trust (GBTC), which saw outflows of $39.59 million.

A new spot crypto ETF could soon be hitting U.S. markets as Hasdex applies to launch the first index-based crypto ETF, comprised of both BTC and ETF, potentially paving the way for new crypto ETFs.

About the Author

Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.

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