US Ethereum ETFs See $24M Inflows, Grayscale’s ETHE Faces $31M Outflows

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As a seasoned researcher who has been closely observing and analyzing the crypto market for years, I find it fascinating to see the evolving trends of Ether and Bitcoin exchange-traded funds (ETFs). The recent inflows of $24.34 million into US Ethereum ETFs on August 13, 2024, is a testament to growing investor interest in regulated exposure to the world’s second-largest cryptocurrency. However, it’s worth noting that Grayscale’s ETHE witnessed a net outflow of funds, which might be due to concerns about its ability to convert shares into real Ethereum at present or perhaps a shift in demand towards newer spot Ether ETFs.

On August 13, 2024, U.S. Ethereum exchange-traded funds (ETFs) reported a modest inflow of approximately $24.34 million, making it the second consecutive day with inflows since the start of the week. Contrasting this positive pattern, Grayscale’s Ethereum Trust (ETHE) experienced an outflow instead.

Contrarily, the cumulative inflows from the three ETFs offset the adverse outflow effect caused by Grayscale’s ETHE, as suggested by the data provided by SoSoValue. Leading the charge was Blackrock’s iShares Ethereum Trust (ETHA), with a significant $49.12 million net inflows, marking a reversal from yesterday’s stagnant flow.

Apart from Blackrock’s ETHA, Fidelity’s FETH and Invesco’s QETH recorded investments totaling approximately $6.23 million (5.41 million + 813,690) collectively. The rising interest in spot Ether ETFs indicates a growing demand for regulated ways to invest in the world’s second-largest cryptocurrency.

Photo: SoSoValue

Grayscale ETHE Loses Momentum

Among all Ether Exchange-Traded Funds (ETFs), only Grayscale’s ETHE experienced a net outflow of funds, as reported by SosoValue. Approximately $31 million exited the fund, marking a reversal from the previous day’s neutral flow. This outflow could be due to concerns that Grayscale is currently unable to convert ETHE shares into actual Ethereum. Additionally, the emergence of new rival spot Ether ETFs might be drawing some demand away from ETHE at this time.

In a manner similar to the growth seen in the market for Ether ETFs, Bitcoin ETFs in the U.S. also witnessed increased investments on Tuesday. The combined 12 Bitcoin ETFs reported inflows totaling approximately $38.94 million, with BlackRock’s leading iShares Bitcoin Trust (IBIT) accounting for the largest share at around $34.55 million.

Despite an increase in net transactions for both spot Ether and Bitcoin ETFs, the overall trading volumes experienced a decline compared to the previous day. Specifically, the daily trading volume for spot Ether ETFs amounted to approximately $191 million on Tuesday, which is lower than the $285.9 million traded on Monday. Likewise, the daily trading volume of Bitcoin ETFs was around $1.18 billion, a slight decrease from the $1.3 billion transacted on Monday.

Crypto ETFs Shift Market Momentum

On Tuesday, the varying outcomes of Ethereum and Bitcoin Exchange-Traded Funds (ETFs) showcase the volatile nature of the cryptocurrency ETF market. Interest in Ethereum ETFs is growing, but Grayscale’s ETHE encounters difficulties. Conversely, Bitcoin ETFs maintain consistent investments, strengthening Bitcoin’s status as a prominent investment within the crypto sector.

Currently as I type, Ethereum is being bought and sold for approximately $2,733. This represents a 3.60% increase over the past day, based on data from CoinMarketCap. Interestingly, despite this upward trend, the volume of trades involving Ethereum decreased by about 30% during the same period. When we look at its weekly performance, Ethereum has risen by 8.60%. However, in the last month, it seems to have lost some momentum, showing a decrease of 14.80%.

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2024-08-14 13:22