Ethereum ETF Outflows Rage On: Nearly $210 Million Exit Grayscale Funds While Others Pull Inflows

• Grayscale’s Ethereum Trust (ETHE) outflows have now exceeded $1.7 billion.
• The Grayscale Mini Ethereum Trust has failed to capture ETHE outflows.
• BlackRock’s Ethereum ETF now has over $500 million in net assets.

U.S. spot Ethereum (ETH) exchange-traded funds (ETFs) have seen their fourth day of net outflows as Grayscale’s outflow losses approach $2 billion.

Meanwhile, every other Ethereum ETF is in the green or has experienced neutral flows, suggesting that ETH ETFs are, in fact, a sound success.

Ethereum ETFs

As per SoSoValue , U.S. Spot Ethereum ETFs shed $98.29 million on July 29, extending its streak of consecutive net outflows. As ever, every other ETH ETF was either in the green or saw neutral flows, apart from Grayscale’s Ethereum Trust (ETHE).

Once again, the top gainers are BlackRock’s iShares ETF (ETHA), which bagged net inflows of $58.17 million, followed by Fidelity’s Ethereum Fund (FETH), which netted $24.82 million.

Notably, BlackRock’s ETHA has now surpassed  a cumulative net inflow of $500 million, almost double that of its nearest competitors.

VanEck’s Ethereum ETF (ETHV) witnessed its second-largest day of net inflows, securing $10.91 million. Conversely, Bitwise’s Ethereum ETF (ETHW) racked up $10.45 million in net assets, the lowest it has recorded since trading began on July 23, 2024.

The Grayscale Ethereum Mini Trust (ETH) saw a muted performance, securing $4.9 million, as did Franklin Templeton’s Ethereum ETF (EZET), which had $2.52 million in net inflows.

Carrying on its own streak of neutral flows, the 21Shares Core Ethereum ETF (CETH) recorded its fourth day of consecutive neutral flows, as did Invesco Galaxy’s Ethereum ETF (QETH), which recorded its second day.

Grayscale’s Outflow Woes

Grayscale Ethereum Trust  (ETHE) saw another day of outflows, losing $210.04 million from its balance sheet.

Now, the fund has lost $1.72 billion in net outflows, which has seen the ETF’s net assets plummet to $6.98 billion in just a few days.

While some speculate that these outflows could see the ETF emptied within weeks, other analysts believe that outflow pressures could soon come to a halt.

According to crypto analyst Mads Eberhardt, the Grayscale Bitcoin Trust (GBTC) outflows significantly subsided after approximately two weeks of trading.

He posits that since ETHE has seen higher outflows relative to its assets under management (AUM), peak selling pressure may occur sometime this week.

Consistent Outflows

That said, a few factors are dampening Grayscale’s ability to retain investors or even convert them into its mini fund.

Firstly, ETHE has a huge 2.5% management fee, 10 times greater than most competitors’ and significantly higher than its mini fund’s 0.15% management fee.

However, as evidenced by the Grayscale Ethereum Mini Trust’s performance, exits from ETHE are not converting back into the mini fund, suggesting that investors have lost confidence in Grayscale.

Considering that the Grayscale Bitcoin Trust (GBTC) has lost more than half of its net assets since launch, some $18.87 billion, fears that Grayscale’s ETHE outflows could drain the fund aren’t exactly unrealistic.