Ethereum ETFs Display Volatility as ETHE Records $31 Million in Outflow

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As crypto nurse wounds from last week’s devastating downturn, Ethereum ETFs have remained volatile, with substantial outflows over the past day. 

Grayscale’s Ethereum Trust (ETHE) ETF recorded net outflows of $31 million on August 13. This suggests the negative flow has resumed following a brief pause. August 12 was ETHE’s first day without recording any outflows since its launch.

Ethereum ETF Flow (US$ million) – 2024-08-13

TOTAL NET FLOW: 24.3
(Provisional data)

ETHA: 49.1
FETH: 5.4
ETHW: 0
CETH: 0
ETHV: 0
QETH: 0.8
EZET: 0
ETHE: -31
ETH: 0

For all the data & disclaimers visit:https://t.co/FppgUwAthD

— Farside Investors (@FarsideUK) August 14, 2024

According to data from Farside Investors, ETHE has a total net outflow of over $2.3 billion since its launch. Despite ETHE’s recent outflows, the Spot Ether ETFs remained positive, recording net inflows of $24.3 million on August 13.  

Ethereum ETFs Remain Positive Despite Outflows from ETHE

Since converting to a spot Ethereum ETF, Grayscale’s Ethereum Trust (ETHE) has recorded net outflows of approximately $2.3 billion ETH. This figure represents approximately 25% of ETHE’s initial net assets under management (AUM) of $9 billion.

This drastic decline occurred within two and a half weeks of the spot Ether ETF launch. In contrast, Grayscale’s Bitcoin Trust (GBTC) took almost four months to record its first day of no outflows.

Meanwhile, Grayscale’s Ethereum Mini Trust ETF has recorded no net outflow, maintaining a total inflow of $221 million since its launch. These contrasting results show investors are more confident in the newly launched Mini Trust ETF. 

Besides the outflows from ETHE, other spot Ethereum ETFs saw significant inflows, reaching $24.3 million on August 13. BlackRock’s iShares ETF ETHA led the flows with net inflows of $49.12 million, bringing its net inflow since launch to $950 million. 

Fidelity’s Spot Ether ETF FETH recorded inflows of $5.41 million, moving its total inflows to $351 million. However, despite the positive numbers, the net Outflow for Spot Ether ETFs has increased to $377 million. 

Amid the mixed Ether ETF signals, Ethereum has recorded a significant price recovery following the recent downturn. ETH has rallied above $2,700 and currently eyes the $3000 level, creating optimism among investors. Ethereum (ETH) trades at $2,750, with a 4.3% increase in the past 24 hours. 

Analysts Share Thoughts on ETFs and Possible Future Outlook

The arrival of crypto ETFs sparked optimism among market participants, with many anticipating notable price movements. Some industry experts believe the spot Bitcoin and Ethereum ETFs positively impacted crypto market dynamics.

Bloomberg ETF analyst Eric Balchunas stated that Bitcoin’s price would be around $20,000 if the Spot ETFs did not launch. Balchunas noted that events such as the Mt. Gox selloff would have dropped Bitcoin from around $31,000 to $20,000.

Also, the recently launched Ether ETFs have attracted new liquidity to the Ethereum ecosystem. Analytical platform Blockworks reveals that Spot Ethereum ETFs have a total market cap of $8.20 billion. Currently, the Ether Spot ETFs boast a 24-trading volume of $157.67 million on August 14, confirming investor interest. 

Meanwhile, Nate Geraci, President of ETF Store, highlighted some intriguing comments by ETF attorney Jeremy Senderowicz. He noted that Attorney Senderowicz believes the approval of the ETF share class structure strongly depends on the outcome of the upcoming US elections.

Very interesting comments from leading ETF attorney Jeremy Senderowicz…

Says approval of ETF share class structure could hinge on upcoming election (something obviously discussed re: solana ETF, etc as well).

via @KathieOD_PI pic.twitter.com/b1wWRHP674

— Nate Geraci (@NateGeraci) August 13, 2024

According to Senderowicz, there is a good chance for the applications to be approved if the Republicans win the election. Geraci also mentioned that the approval of other ETFs like Solana ETFs could be hampered if the Democrats win the election.

These discussions confirm the rising status of crypto ETFs as a tool for expanding and adopting the crypto industry.