Ethereum ETF’s Brief Respite Ends With $77 Million in Net Outflow

• Ethereum ETFs have seen outflows of almost $500 million.
• The Grayscale Ethereum Trust (ETHE) has lost $2 billion from its $9 billion fund.
• Spot BTC ETFs saw inflows of under $300k, the lowest since launch.

After a brief period of inflows, the U.S. spot Ethereum exchange-traded funds (ETFs) are seeing outflows again. The price of ETH just can’t seem to break through the $3,500 barrier, and investors are likely starting to lose confidence

Meanwhile, spot Bitcoin (BTC) ETFs saw their single lowest day of net inflows, suggesting institutional investors are taking a little break from their crypto ETF spending spree.

Ethereum ETFs

As per SoSoValue , U.S. Spot ETH ETFs witnessed a very muted trading day on July 31, recording a total net outflow of $77.21 million as hopes of an inflow streak were dashed.

In a surprise turn of events, Grayscale’s Ethereum Mini Trust (ETH) was the top gainer for the first time, posting a humble $19.54 million of inflows. Close behind is the Fidelity Ethereum Fund (FETH), which posted a sturdy $18.8 million.

Meanwhile, BlackRock’s iShares ETF (ETHA) saw its most subdued day of flows yet, netting $4.98 million. As did VanEck’s Ethereum ETF (ETHV), with $4.81 million, and Bitwise’s Ethereum ETF (ETHW), which added $4.71 million to its fund.

21Shares Core Ethereum ETF (CETH) saw the lowest intake, bagging $3.28 million. Though small compared to its competitors, this is the second day of net inflows for CETH after a 5-day neutral flow streak.

Franklin Templeton’s Ethereum ETF (EZET) recorded neutral flows, as did Invesco Galaxy’s Ethereum ETF (QETH), which has seen its fourth consecutive day of neutral flows. Grayscale’s Ethereum Trust (ETHE) continued in typical fashion with its seventh day of consecutive net outflows, losing $133.33 million.

Ethereum (ETH) Price Impact

Following the launch of spot Bitcoin (BTC) ETFs, Bitcoin relished solid price gains, which saw the premier crypto break into a new all-time high (ATH). This fact alone leads many to think that the same will happen for ETH. But here’s why it probably won’t, at least not in the same way.

While there was some small but positive price movement following the launch of U.S. spot BTC ETFs on Jan. 11, 2024, it took several weeks for Bitcoin’s price to take off, launch itself up past 50,000, and scream to an ATH of $73,000. This was also coupled with memecoin mania, which saw a brief moment of market euphoria, as well as the fourth Bitcoin Halving bringing a supply shock to the market.

Following Ethereum’s Dencun update, ETH caught a solid price boost and began pushing above the $2,200 mark, a price not seen since mid-2022. Eventually, ETH’s price topped off at just over $4,000 on March 12, 2024, and traders have struggled to break above it ever since.

At the time of writing, the mild success of Ethereum ETFs has barely nudged the price of ETH, which is currently on a downward trajectory. At $3,169, ETH is down 4.44% at the time of writing and approximately 9.1% for the month.

Institutional Appetite?

Across both spot BTC and ETH ETFs, demand appears to be dwindling. Perhaps this is evidenced by the meager $298,930 of net inflows posted on July 31, 2024.

This is the lowest daily net inflow recorded since launching on Jan. 11, 2024. It’s significant as BTC ETFs were averaging inflows in the tens and hundreds of millions throughout July but it seems as though this has subsided for now.