Ethereum ETFs Still in Red While BlackRock Bucks Trend By Topping $1 Billion Inflows

• Cumulative outflows for the past five days are approaching $100 million.
• BlackRock’s ETH ETF is the first to surpass $1 billion in net inflows.
• Grayscale’s primary Ethereum fund outflows have reached $2.5 billion.

U.S. spot Ethereum (ETH) exchange-traded funds (ETFs) have posted net outflows for yet another day, marking the longest streak since launch.

While the ETH ETF market appears to be on a losing streak, Grayscale’s outflows are the main driver behind the negative daily flow results.

Ethereum ETFs

Per data from  SoSoValue, Ethereum ETFs have seen $17.97 million in net outflows for Aug. 21, 2024, bringing their cumulative net outflows to $458 million.

Fidelity’s Ethereum Fund (FETH) secured the top spot for inflows, posting $7.93 million in gains. FETH is the second-best performing fund in cumulative net inflows, which now stand at $375.43 million.

Closing the gap is the Grayscale Ethereum Mini Trust, which tallied $4.24 million in net inflows, bringing its cumulative total to $232.08 million.

After a six-day neutral flow streak, the Franklin Templeton Ethereum Trust (EZET) has emerged as an unlikely victor amid today’s outflows. It secured a cool $1 million for its fund, bringing EZET’s cumulative net inflow to $36.33 million, ranking it sixth amongst other funds.

All other funds, except for one, posted neutral flows. The Grayscale Ethereum Trust (ETHE) saw its seventh day of outflows, shedding $31.14 million from its fund.

BlackRock ETFs Up

BlackRock’s iShares Ethereum Trust (ETHA) is still on top despite posting neutral flows. After drawing in a modest $26.77 million on Aug. 20, ETHA surpassed $1 billion in cumulative net inflows and is the first ETH ETF to do so.

Having recorded just five days of neutral flows, ETHA is yet to see a single day of net outflows.

The firm’s management fees aren’t exactly competitive and sit at 0.25%, which is just above or the same as a majority of other funds. Of course, this is except for Grayscale’s ETHE, which has a fee ten times higher than BlackRock’s ETHA.

Other Ethereum ETFs have quite a gap to close. ETHA’s net inflows are nearly triple that of its nearest competitor, Fidelity, which is some $725 million behind BlackRock in cumulative net inflows.

Grayscale Down

From the outside, ETH ETFs appear to be consistently failing. However, in reality, Grayscale is the only fund in the red. Since its launch, the fund has seen $2.5 billion in net outflows. Notably, Grayscale’s Bitcoin Trust (GBTC) outflows are now approaching $20 billion.

Grayscale’s mini Ethereum fund, which carries a 0.15% fee, is also failing to capture the losses from the Grayscale Ethereum Trust (ETHE), which has a 2.5% management fee.

Some had predicted that the entire ETHE fund could be depleted within weeks if daily outflows persisted at $100 million or more. Yet without any inflows, these small exits of $10 million here and $30 million there will tally up fast.

Having started with just under $9 billion in net assets, ETHE has just $4.85 billion remaining after less than a month of trading. The firm’s Bitcoin fund has $14.06 billion of its initial $29.5 billion remaining.

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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