The U.S. spot Ether exchange-traded funds (ETFs) have been experiencing minimal inflows recently, while outflows from Grayscale Ethereum Trust (ETHE) continue. On August 1st, Ether ETFs recorded a net inflow of $26.7 million, primarily due to an $89.6 million inflow into BlackRock’s iShares Ethereum Trust (ETHA). In contrast, Grayscale’s Ethereum Trust faced outflows of $78 million on the same day, totaling over $2 billion since its conversion to a spot ETF. It is essential to note that Grayscale’s ETHE was initially a trust providing institutional investors with exposure to Ether, holding $9 billion in Ether before its conversion.
Mads Eberhardt, a senior analyst at Steno Research, speculated that the significant outflows from Grayscale’s ETHE might decrease by the end of the week, potentially offering a bullish indicator for ETH prices. The Ethereum ETF net outflow is yet to subside, but analysts anticipate a turnaround soon signaling positive growth. ETH’s price has been sensitive to inflows into spot products, with the current trading price at $3,168, down 8.5% since the ETFs’ launch. This sensitivity implies that market inflows are crucial for determining ETH’s future price movements.
Meanwhile, the 12 spot Bitcoin ETFs in the U.S. reported a total daily net inflow of $50.64 million, with Grayscale’s Bitcoin Mini Trust and BlackRock’s IBIT leading in inflows. However, some U.S. funds experienced net outflows, including Grayscale’s GBTC, Fidelity’s FBTC, and Ark Invest and 21Shares’ ARKB. Despite the significant inflows accumulated by spot Bitcoin products since January of $17.74 billion, the two largest spot Bitcoin ETFs—BlackRock’s IBIT and Grayscale’s GBTC—traded down about 3% on Thursday, according to The Block’s Bitcoin ETF Tracker.
The digital asset investment landscape continues to attract substantial interest, with consistent positive inflows observed over the past few weeks. Notably, the sector welcomed an influx of $245 million last week, contributing to a record year-to-date (YTD) inflow of $20.5 billion. Bitcoin products have been particularly popular, with inflows totaling $519 million last week alone, reaching a staggering YTD inflow of $19 billion. This data suggests that despite market fluctuations, investor interest in digital asset investments remains strong, emphasizing the potential for continued growth and development in the cryptocurrency space.
