The newly launched United States-based spot Ethereum exchange-traded funds (ETFs) faced a tough second trading day, recording net outflows of $113.3 million.
The newly launched United States-based spot Ethereum exchange-traded funds (ETFs) faced a tough second trading day, recording net outflows of $113.3 million. This downturn was largely driven by significant sell-offs from Grayscale’s Ethereum Trust.
The heavy outflows were primarily due to Grayscale’s Ethereum Trust (ETHE), which experienced substantial sell-offs totaling $326.9 million. Grayscale’s fund, initially launched in 2017, allowed institutional investors to purchase Ether (ETH) but required a six-month lock-up period for investments. Following its conversion to a spot Ether fund on July 22, investors gained the ability to sell their holdings more freely.
Despite the overall negative trend, seven out of the eight new spot Ether ETFs saw net inflows on their second day. Leading the way were the Fidelity Ethereum Fund (FETH) and the Bitwise Ethereum ETF (BITW), which reported net inflows of $74.5 million and $29.6 million, respectively. BlackRock’s iShares Ethereum Trust (ETHA), which had the strongest inflows on its debut day, managed to pull in $17.4 million from investors on July 24.
In the two days following its conversion, ETHE saw a massive $811 million in outflows, indicating that investors have offloaded over 9% of the fund’s assets. This significant liquidation overshadowed the positive inflows seen by the other new Ether ETFs.
The performance of these Ether ETFs mirrors what was observed with the launch of spot Bitcoin ETFs. During their initial trading days, spot Bitcoin ETFs experienced cumulative net outflows on six out of their first ten days, with many attributing these outflows to the Grayscale Bitcoin Trust ETF. ETH is trading at $3,185, remaining relatively flat over the past 24 hours. However, it declined by over 6.6% in the past week, according to CoinMarketCap data.
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