ETHEREUM | Ethereum ETFs Lose Over $470 Million in First Month of Trading

U.S-traded spot Ethereum (ETH) exchange-traded funds (ETFs) saw about $476 million in outflows during the first month of trading.

The ETFs, listed on July 23 2024, posted positive net inflows of $106.6 million on the first day but Grayscale’s freshly-converted Ethereum Trust experienced $484.1 million in net outflows, a trend that would continue for the rest of the month

According to data from Soso Value, Grayscale’s ETHE shed nearly $2.6 billion in its first month.

 *Sport Ethereum ETFs weekly performance since launch on week of July 23. Only one week saw positive net inflows.*This performance stands in stark contrast to the $5 billion in inflows that Bitcoin ETFs attracted within a comparable period after their launch. This led Bloomberg ETF analyst to point out the “heroic” performance by the 9 BTC ETFs to stem the outflows from the unlock of Grayscale’s GBTC, regarded as the world’s largest Bitcoin ETF.

Although the inflows for other Ether ETFs weren’t enough to achieve a positive net flow for the month, the amount of money invested in these crypto products has still been substantial:

• BlackRock’s ETHA saw over $1 billion in inflows, making it the seventh-largest ETF by year-to-date flows, according to shared data
• Fidelity’s FETH also experienced notable inflows of approximately $393 million, ranking it as the 19th largest ETF in 2024
• Bitwise’s ETHW is another US-traded Ethereum ETF, collecting over $300 million in inflows during its first year
• Despite significant outflows from Grayscale’s ETHE, its Ethereum mini trust, ETH, managed to attract close to $240 million in inflows

If the total inflows of U.S-traded Ethereum ETFs were combined into one product, it would rank as the fourth-largest exchange-traded fund by 2024’s flows.

Cumulatively, the ETFs have registered a net negative $562.16 million in flows as of September 4 2024. Meanwhile, while the 8 other products have registered positive inflows in the hundreds of millions, Grayscales ETHE has $2.6 billion in outflows, dragging down the cumulative figure to negative.