Ethereum ETFs Break Two-Week Withdrawal Trend, Garner $5 Million
Ethereum exchange-traded funds (ETFs) in the U.S. have displayed resilience compared to their Bitcoin counterparts amid recent challenges faced by the latter. Ethereum funds saw a total net inflow of $5.8 million yesterday, marking their first positive day after nine consecutive trading days of outflows.
In contrast, Bitcoin spot ETFs experienced significant outflows, with a total net outflow of $105 million on Wednesday. Major players like Grayscale (GBTC) and ARK Invest’s (ARKB) funds bore the brunt of this exodus, according to data from SoSo Value.
Breaking down the performance of Ethereum ETFs, BlackRock’s (ETHA) led the way with an inflow of $8.4 million, followed by Fidelity’s (FETH) attracting $1.3 million. However, Grayscale’s ETHE continued to face challenges with an outflow of $3.8 million, as data indicates.
The recent uptick in Ethereum ETF inflows suggests a growing interest in the second-largest cryptocurrency by market cap, despite historically stronger demand for Bitcoin ETFs since their inception.
Industry analysts have highlighted the impact of timing on ETF performance, noting that Ethereum ETFs debuted during the slower summer months, potentially affecting initial investor enthusiasm. Nevertheless, the recent inflow signals a potential shift in investor sentiment towards Ethereum.
In contrast, Matteo Greco, a Research Analyst at Fineqia International, pointed out the stark contrast between Bitcoin and Ethereum ETFs. Last week, Bitcoin ETFs recorded $500 million in net inflows, reflecting a 9.9% rise in BTC’s price and robust trading activity. On the other hand, Ethereum ETFs faced challenges, with outflows totaling $43 million last week and an additional $13 million on August 26, despite an increase in ETH’s price.
K33 Research analysts highlighted the struggles of Ethereum ETFs since their launch, with net outflows of 196,652 ETH and a majority of their initial trading days ending in outflows. This stands in contrast to Bitcoin ETFs, which experienced fewer outflow days in their initial trading period.
The timing of the ETF launches, particularly during the summer months, has influenced market activity, with Ethereum ETFs facing more significant challenges compared to Bitcoin ETFs. The Grayscale conversion has also contributed to increased supply in the market, affecting Ethereum ETF performance.
Overall, the performance disparity between Bitcoin and Ethereum ETFs underscores the evolving dynamics within the cryptocurrency market.
