Ethereum ETF Outflows Resume, Grayscale and Bitwise Seek Options Trading Rule Change

• Ethereum ETF trading volumes are a third of what they were at launch.
• BlackRock, Grayscale, and Bitwise all seek to enable options for trading on Ethereum ETFs.
• Ethereum ETF options may not happen before they are approved for Bitcoin ETFs.

U.S. Spot Ethereum (ETH) exchange-traded funds (ETFs) have posted modest outflows following a brief two-day streak of net inflows.

Perhaps in a bid to improve investor interest, fund issuers and exchanges are now applying to have options trading enabled on Ethereum ETFs.

Ethereum ETFs

According to data gathered  by SoSoValue, Ethereum ETFs have seen their lowest day of exits since launching, recording a total net outflow of $23.68 million.

Fidelity’s Ethereum Fund (FETH) netted a cool $4.7 million in net inflows, Franklin Templeton’s Ethereum ETF (EZET) scored $1.79 million, and Bitwise’s Ethereum ETF (ETHW) gained $1.69 million.

All other funds recorded neutral flows except for the Grayscale Ethereum Trust (ETHE), which reached day twelve of its outflow streak. Like clockwork, it shed $31.86 million from its fund. Since its launch, ETHE has seen $2.23 billion in exits.

After showing brief signs of promise, the Grayscale Ethereum Mini Trust (ETH) saw neutral flows. Seemingly, Grayscale’s bid to convert, capture, or retain investors with its low-fee mini-trust isn’t quite working out.

ETF Options Trading

In an Aug. 7 filing  with the U.S. Securities and Exchange Commission (SEC), the New York Stock Exchange (NYSE) applied to “permit the listing and trading” of options for Grayscale’s ETHE, its ETH mini ETF, and Bitwise’s ETHW.

Following in the footsteps of BlackRock and Nasdaq, who are also bidding for the privilege, the rule change would provide a low-cost investment tool for gaining exposure to Ethereum.

The filing also stated that it would offer investors a hedging mechanism to meet investment needs “in connection with ether-related products and positions.”

The SEC has 21 days to respond and provide comments on the proposal. However, a final decision may be over a year away. In July, the SEC responded  to several requests to list options on spot Bitcoin ETFs, stating that more time was needed to review the proposals sufficiently.

Ethereum Price

With Ethereum ETFs now in play and ever-growing ecosystem metrics , some are beginning to wonder if ETH is underperforming. It’s worth considering that the crypto market is going through a rather broad shakeout that has led to a steep price decline.

Ethereum’s decentralized finance (DeFi) ecosystem, more specifically leveraged positions, was hit hard in the recent market rout. Some 280,000 thousand traders saw hundreds of millions worth of liquidations between Aug. 4 and Aug. 6,

After shedding some 23% in value in the past seven days, dropping from around $3,100 to $2,424 at the time of writing, ETH has lost just under $100 billion from its market cap since Aug. 1, 2024.

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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