Ethereum spot exchange-traded funds (ETFs) have seen a positive net inflow of $5.8 million, breaking a streak of nine consecutive days of net outflows. BlackRock’s ETHA ETF attracted the largest inflow of $8.4 million, followed by Fidelity’s FETH ETF with an inflow of $1.3 million. In contrast, Grayscale’s ETHE ETF experienced an outflow of $3.8 million, reflecting some selling pressure despite the overall positive trend.
The recent outflow streak for Ethereum ETFs lasted for nine days, the longest since their launch last month. The total net flow for Ethereum ETFs has reached nearly $500 million within the first five weeks of trading. Analysts from JP Morgan anticipated weaker flows for Ethereum ETFs compared to Bitcoin ETFs due to factors such as the absence of staking and lower liquidity. Grayscale’s ETHE outflows exceeding expectations have sparked discussions among asset managers about launching a combined Bitcoin and Ethereum spot ETF.
Bitcoin spot ETFs also faced challenges with a total net outflow of $105 million on Wednesday. Grayscale ETF GBTC saw $7.9796 million in outflows, followed by Grayscale mini ETF BTC at $8.7716 million and ARKB at $59.27 million. In related news, BlackRock debuted its Ethereum ETF on Brazil’s stock exchange, B3, under the ticker ETHA39. The ETF is available to both retail and institutional investors in Brazil and is offered through a depositary receipt, priced at one-third of its original value for the local market.
Management fees for BlackRock’s iShares Ethereum Trust (ETHA) in Brazil are set at 0.25% annually, with a reduced rate of 0.12% during the first year or until the fund reaches $2.5 billion in assets under management. BlackRock previously introduced its iShares Bitcoin Trust in Brazil through a depositary receipt, which has seen significant growth in demand. Brazil has been at the forefront of allowing the trading of crypto-tied products on its stock exchange, with the introduction of 15 ETFs or depositary receipts linked to digital assets and approval for the world’s first spot Solana-based ETF.
In conclusion, Ethereum spot ETFs have seen a positive net inflow after a streak of outflows, with BlackRock’s ETHA ETF leading with the largest inflow. The recent challenges faced by Ethereum and Bitcoin spot ETFs highlight the volatility and dynamics of the crypto market. BlackRock’s expansion of cryptocurrency offerings in Brazil signifies the growing demand for digital asset investment opportunities globally. The approval of new ETFs and depositary receipts linked to digital assets further demonstrates the increasing acceptance and adoption of cryptocurrencies in traditional financial markets.
