Ethereum ETFs Hold Strong With $1B Volume but Post $133M Net Outflow on Second Trading Day

• Ethereum ETFs have traded over $1 billion in volume for the second day in a row.
• Seven out of the nine newborn ETH ETFs posted positive net inflows.
• Grayscale’s primary ETH ETF has seen over $800 million in outflows in two days.

U.S. Spot Ethereum (ETH) exchange-traded funds (ETFs) have seen net outflows on their second day of trading despite over $1 billion in trading volumes.

With seven out of the nine newborn ETH ETFs posting positive net inflows, Grayscale’s outflows are heavily impacting these results, just as they did with Bitcoin ETFs.

Ethereum ETF Performance

As per data from SoSoValue , U.S. Spot Ethereum ETFs saw a total outflow of $133.16 million on July 24. However, it’s not all bad news, as only one ETF saw negative flows, while the others posted solid net inflows.

Fidelity’s Ethereum Fund (FETH) emerged as the top gainer, attracting $74.46 million in inflows. Grayscale Ethereum Mini Trust (ETH) followed closely, drawing in $45.93 million.

Other Ethereum-focused funds also saw significant inflows, including Bitwise’s Ethereum ETF (ETHW) with $29.64 million, VanEck’s Ethereum ETF (ETHV) with $19.85 million, and BlackRock’s iShares ETF (ETHA) with $17.44 million.

In contrast, Franklin Templeton’s Ethereum ETF (EZET) and Invesco Galaxy’s Ethereum ETF (QETH) experienced relatively modest inflows of $3.86 million and $2.52 million, respectively. The 21 Shares Core Ethereum ETF (CETH) reported neutral flows.

However, Grayscale’s primary Spot Ethereum ETF, ETHE, bucked the trend and suffered outflows, adding to the company’s woes. Interestingly, Grayscale has also been struggling to stem the tide of outflows from its Bitcoin ETF, GBTC, which has billions of dollars over the past two quarters.

Grayscale Outflows

With over $1 billion in trading volumes across all nine funds, the Grayscale Ethereum Trust (ETHE) is the main driver behind the net outflows, experiencing a whopping $326.86 million exit from its fund.

Grayscale’s outflows are significant, having already shed $811 million from its $9 billion fund. Naturally, if they persist, they will continue to drag the net inflow numbers lower than they could be.

Since January 11, 2024, Grayscale’s Bitcoin Trust (GBTC) has experienced a significant decline in value, shedding $18.75 billion. Notably, GBTC is the only fund to have seen a decrease in net assets since its launch. This trend could also affect the Grayscale Ethereum Trust (ETHE), which charges a management fee of 2.5%.

As a result, ETHE may continue to experience outflows. However, some of these outflows could be redirected into Grayscale’s mini-trust, which offers a much lower management fee of 0.15%. Whether the mini-trust can mitigate the substantial outflows from Grayscale’s main funds remains to be seen.