Ethereum ETFs are on a losing streak as they post a fourth day of outflows.
(Photo by Scott Olson/Getty Images)
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Key Takeaways
BlackRock’s Ethereum ETF has now seen a cumulative net inflow of $1 billion.
Grayscale’s ETH ETF has lost over a quarter of its assets since July 23.
The price of ETH continues to trade sideways between the $2,500 – $2,700 region.
U.S. spot Ethereum (ETH) exchange-traded funds (ETFs) are struggling to gain traction as they continue a persistent losing streak.
Ethereum ETFs
Per data from SoSoValue, Ethereum ETFs are – seemingly – on a losing streak, posting yet another day of cumulative net outflows amounting to $6.49 million.
Ethereum ETF flows. Source: SoSoValue
After a day of neutral flows, BlackRock’s iShares Ethereum Trust (ETHA) received the lion’s share, netting a healthy $26.77 million.
This finally brings the ETHA’s cumulative net inflows to a solid $1 billion, making it the top-performing ETH ETF by quite a margin. The second-best-performing is the Fidelity Ethereum Fund (FETH), which has seen $367.5 million in cumulative net inflows.
The only other fund to see inflows was the Bitwise Ethereum ETF (ETHW), which added $3.73 million to its portfolio. With a cumulative net inflow of $310.79 million, ETHW ranks third among its nine competitors.
Grayscale Outflows
As seen with Bitcoin ETFs, Grayscale’s outflows have been the primary driver behind most of the outflow figures that Ethereum ETFs are posting.
$ETHE net flows: $27.7m (71.4% fund left)$GBTC net flows: $72.9m (47.1% fund left)
Grayscale Ethereum is shedding value faster which is a good thing cause the overhang supply will be gone sooner.@FarsideUKpic.twitter.com/Z2APDMcaUB
According to SoSoValue, the Grayscale Ethereum Trust (ETHE) saw $36.99 million, marking its sixth consecutive day of outflows. ETHE’s cumulative net outflows now stand at $2.47 billion, which is a brutal figure considering that this has depleted over a quarter of the fund’s net assets.
ETH ETFs Behind?
After 21 days of trading, there’s a chance that Ethereum may not be as attractive to institutional investors as Bitcoin. But it’s worth noting that Bitcoin ETFs launched in January 2024, months before the Bitcoin halving event in April, which resulted in what may have been a premature bull run.
Memecoin mania certainly contributed to Bitcoin’s market surge, but by mid-March, Ethereum’s climb had run out of steam after peaking at just over $4,000. The price of ETH briefly dropped below the $3,000 mark in April, but rumors of ETF approvals and launch dates propped the price up once more through May, June, and most of July.
Much to everyone’s surprise, the price of ETH did not follow in the footsteps of post-ETF BTC and began to decline significantly following its launch on July 23, 2024.
Simply put, it’s hard to tell if Ethereum ETFs are underperforming because they are unattractive to investors or if the myriad macroeconomic, geopolitical, and broader market woes are encouraging a slow-and-steady approach for the moment.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
