Ethereum ETF Redemptions Exceed $2 Billion Amid Market Volatility

Grayscale’s Ethereum ETF experienced significant outflows on August 2, with over $2 billion exiting the fund, marking an unprecedented event for the platform. The Grayscale Ethereum Trust (ETHE) saw a massive $2.1 billion leaving, causing substantial swings in spot Ether ETFs in the US.

Data provided by SoSoValue on August 2nd revealed that spot Ether ETFs witnessed net outflows exceeding $54 million, with the majority of these funds departing from ETHE, which itself lost over $61 million in a single day. ETHE has been a key player since 2017 for investors seeking exposure to Ethereum without directly purchasing and holding the cryptocurrency.

Despite the significant outflows from ETHE, other spot Ether ETFs displayed different trajectories. Notably, the Grayscale Ethereum Mini Trust ETF (ETH) did not experience any outflows, maintaining a net inflow of $201 million.

In contrast, the Fidelity Ethereum Fund (FETH) saw major inflows of over $6 million on the same day, making it the largest net investor with total net inflows reaching $297 million. The Franklin Ethereum ETF (EZET) also observed positive inflows of just over $1 million, contributing to total net inflows of $30.6 million.

As reported by Cointelegraph, the market capitalization of spot Ethereum exchange-traded funds stood at $8.3 billion as of August 3, 2018. The ETF net asset ratio currently sits at 2.29%, indicating a reasonable distribution of Ether across various ETFs relative to the total market value of ETH.

Since the introduction of spot Ethereum ETFs on July 23, total net outflows have reached $511 million. However, on August 1st, net daily inflows to spot Ethereum ETFs were positive, with BlackRock’s iShares Ethereum Trust (ETHA) receiving $89.6 million, leading to a collective net inflow of $26.7 million across all ETFs.

At present, one Ethereum token (ETH) is trading at $2,987, representing a decrease of approximately 5.71% from its initial value when the ETFs were launched. This market movement highlights the dynamic nature of cryptocurrency investments and the evolving landscape of Ethereum ETFs.