Positive Flow of Ethereum ETF as BlackRock Fund Sees $118 Million Inflows
In Tuesday’s trading session, the group of nine spot Ethereum exchange-traded funds (ETFs) saw a positive shift in net flows. BlackRock’s iShares Ethereum Trust (ETHA) notably attracted $118 million in net inflows, counterbalancing significant withdrawals from Grayscale’s Ethereum ETF (ETHE), as per data from Farside Investors.
On the same day, investors withdrew approximately $120 million from Grayscale’s ETHE, leading to total outflows exceeding $1.8 billion over six trading days. Following its conversion, the fund’s assets under management decreased from over $9 billion to $6.8 billion, according to updated Grayscale data.
Fidelity’s Ethereum fund (FETH) and Grayscale’s Ethereum Mini Trust (ETH) experienced net inflows of over $16 million and $12 million, respectively. Additionally, Bitwise’s Ethereum ETF (ETHW) and Franklin Templeton’s Ethereum ETF (EZET) also recorded gains.
The combined net inflows effectively offset Grayscale’s substantial outflows, resulting in positive ETF flows on July 30. Overall, US spot Ethereum ETFs registered nearly $34 million in inflows.
Despite the reversal in ETF flows, the ongoing downward pressure on Ethereum (ETH) due to significant outflows from Grayscale’s ETHE is expected to persist. Analysts anticipate a slowdown in outflows by the end of the week, potentially leading to a price upturn.
Ethereum is currently trading around $3,200, reflecting a 4% decline over the past week, according to CoinGecko data. The price surged to $3,500 at the Ethereum ETF launch but subsequently dropped by 10% in the following days.
This scenario mirrors Bitcoin’s price behavior post the introduction of spot Bitcoin ETFs in January. Notably, Bitcoin’s price rebounded once outflows from Grayscale’s Bitcoin ETF (GBTC) stabilized.
Overall, the positive shift in ETF flows on July 30 signifies a dynamic market response to the evolving landscape of digital assets, particularly Ethereum and its associated investment products.
