Ethereum ETF inflows turn positive as Grayscale outflows exceed $2 billion
Daily net inflows into United States spot Ether exchange-traded funds (ETFs) have turned positive once more, despite cumulative outflows exceeding $2 billion from the Grayscale Ethereum Trust (ETHE).
On August 1, the Ether ETFs recorded a net inflow of $26.7 million, with BlackRock’s iShares Ethereum Trust (ETHA) leading the way with a $89.6 million influx, as per data from Faride Investors.
Grayscale’s Ethereum Trust experienced outflows of $78 million on the same day, pushing total outflows from the fund past $2 billion since its transformation into a spot ETF.
In contrast to the eight newly launched spot Ether ETFs on July 23, ETHE was a trust that catered to institutional investors seeking exposure to Ether.
Before its conversion, ETHE held $9 billion in Ether. The outflows have now surpassed 22% of the initial fund as of August 1.
Senior analyst Mads Eberhardt from Steno Research suggested that the significant outflows from Grayscale’s ETHE are likely to taper off by the week’s end, indicating that decreased outflows could positively impact ETH’s price.
Eberhardt stated, “When it does, it’s up only from there,” in a post dated July 30.
Earlier remarks from Kaiko’s head of indexes, Will Cai, on July 23 highlighted the price sensitivity of ETH to inflows into spot products.
As of the current publication, ETH is trading at $3,168, reflecting an 8.5% decline since the ETFs’ launch, according to TradingView data.
The value of ETH has dropped by 8.5% since the introduction of spot ETF products.
It is anticipated that the slowdown in outflows from Grayscale’s ETHE could serve as a positive catalyst for ETH’s price, according to industry analysts.
Please note that all investment decisions should be made after thorough personal research, as the information provided here is for informational purposes only.
