Key Takeaways
- Grayscale’s ETHE Outflows:
- Grayscale’s Ethereum Trust (ETHE) experienced massive outflows, losing $326.9 million on the second day and $346.2 million on the third day, totaling $1,157.2 million over three days.
- Mixed Inflows for New Ethereum ETFs:
- Seven out of eight new Ethereum ETFs recorded net inflows, with Fidelity Ethereum Fund (FETH) leading at $74.5 million on the second day. BlackRock’s iShares Ethereum Trust (ETHA) led with $70.9 million on the third day.
- Ethereum Price Resilience:
- Despite outflows, Ethereum’s price rose to $3,269.05, reflecting a 3.21% increase. Historical trends suggest potential for significant gains, mirroring Bitcoin’s post-ETF approval trajectory.
YEREVAN (CoinChapter.com) — On their second day of trading, U.S.-based spot Ether exchange-traded funds (ETFs) faced significant outflows totaling $113.3 million. This was mainly due to heavy withdrawals from Grayscale’s Ethereum Trust (ETHE).
Ethereum ETFs See Mixed Inflows Amid Grayscale Withdrawals
Seven of the eight new spot Ether ETFs recorded net inflows. The Fidelity Ethereum Fund (FETH) saw the largest net inflows with $74.5 million. The Bitwise Ethereum ETF (BITW) followed with $29.6 million in net inflows.
BlackRock’s iShares Ethereum Trust (ETHA) pulled in $17.4 million. Other notable inflows included VanEck Ethereum ETF (CETH) with $0.3 million, and Invesco Ethereum ETF (QETH) with $19.8 million.
Grayscale’s Ethereum Trust (ETHE), recently converted to a spot Ether fund, experienced substantial outflows. On its second trading day, ETHE lost $326.9 million. This impacted the overall performance of all Ether ETFs.
ETHE has seen $811 million in outflows since its conversion, equating to over 9% of the fund’s holdings being sold off by investors. These outflows put downward pressure on the new ETFs’ net performance.
Mixed Results for Ethereum ETFs Amid Significant Outflows
On the third day, the ETFs had mixed results. BlackRock’s iShares Ethereum Trust (ETHA) led with $70.9 million in inflows. Fidelity Ethereum Fund (FETH) saw $34.3 million, and Bitwise Ethereum ETF (BITW) attracted $16.3 million.
Grayscale’s ETHE again faced significant outflows, losing $346.2 million. This dragged down the overall performance of the new spot Ether ETFs. VanEck Ethereum ETF (CETH) and Franklin Ethereum ETF (EZET) recorded no net inflows, while Invesco Ethereum ETF (QETH) managed $8.0 million in inflows.
Overall, the total cumulative net outflows for these ETFs over the first three days amounted to $179.1 million. Grayscale’s ETHE alone accounted for $1,157.2 million in outflows.
The price of ETH is trading at $3,269.05, reflecting an increase of 3.21% in the last 24 hours. The market cap stands at $393,032,180,216, and the 24-hour trading volume is $21,323,992,486. The circulating supply is 120,228,315 ETH. The broader market sell-off, including a decline in the S&P 500, has influenced ETH’s price movements recently.
Ethereum’s Price Trajectory Mirrors Bitcoin’s Post-ETF Approval Path
Ethereum is following a similar price trajectory as Bitcoin after the approval of its ETF. The price data shows an 8% drop to $3,143 two days after approval, reflecting the initial market reaction. This was followed by a 20% decline to $2,749 two weeks after the ETF approval, indicating further short-term volatility.
However, historical trends suggest a potential rebound. Two months after Bitcoin’s ETF approval, the price surged by 90%, reaching $6,547. If Ethereum follows this pattern, investors might expect significant gains in the coming months.
Kaiko analyst Will Cai noted that ETH’s price could be extremely sensitive to inflows following the launch of these ETFs. Grayscale’s ETHE experienced $484.4 million in outflows on its first day as a spot Ether ETF, but robust inflows across the other products initially offset this with cumulative net inflows of $106.6 million.
