Spot Ether ETFs Resume Inflow After Four Consecutive Days of Negative Flows

The nine US spot Ether exchange-traded funds (ETFs) approved over the past week are back with gains with a cumulative net inflow of $33.67 million on Tuesday, July 30, 2024. This comes after the products saw negative flows for four straight trading days, totaling $406 million. Before now, they last saw positive flows on their first trading day (July 23).

Spot Ether ETF Data for July 30

According to data from SoSoValue, BlackRock’s iShares Ethereum Trust (ETHA) saw the most gains on Tuesday, with a single-day inflow of $118 million. 

Other funds with positive flows include Fidelity Ethereum Fund (FETH), Grayscale Ethereum Mini Trust (ETH), Franklin Ethereum ETF (EZET), and Bitwise Ethereum ETF (ETHW), with inflows of $16.36 million, $12.36 million, $3.73 million, and $3.52 million, respectively. VanEck Ethereum ETF (ETHV), Invesco Galaxy Ethereum ETF (QETH), and 21Shares Core Ethereum ETF (CETH) recorded zero flows.

Grayscale Sell-Off Continues 

On the other hand, Grayscale Ethereum Trust (ETHE) continued sell-off with a net outflow of $120 million, bringing its historical negative flows to $1.84 billion. Analysts have attributed this outflow to the higher-than-average management fees the fund charges compared to its competitors. For instance, ETHE charges a 2.5% fee while its peers collect between 0.00% and 0.25%.

Driven mainly by Grayscale’s ETHE, spot Ether ETFs saw a cumulative net outflow of $340 million during their first trading week (July 23 – July 26). Aside from ETHE, the remaining eight products from BlackRock and others raked in $1.2 billion.  Moreover, all the Ether ETFs recorded a cumulative trading volume of $4.05 billion during those four days, representing 34% of the nearly $12 billion volume seen by spot Bitcoin ETFs in their first four trading days.

ETH has failed to impress since the launch of Ether ETFs. At the time of filing this report, the world’s second-largest cryptocurrency was trading at $3,321, a 4% decline over the past week and  less than 1% decrease on the day.