Ethereum ETF Outflows Slow on Fourth Day, But Streak Persists

• 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.

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.

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.

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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