Spot Ethereum ETFs post $113M of outflows on second day of launch
United States exchange-traded funds investing in spot Ether have turned to a net outflow of $113.3 million on their second day of trading, primarily due to heavy bleeding from Grayscale’s Ethereum Trust.
Seven of the eight “newborn” Ether ( ETH ) ETFs posted net inflows on day two of trading. Fidelity’s Ethereum Fund (FETH) and the Bitwise Ethereum ETF (BITW) led the pack with the largest net inflows, posting $74.5 million and $29.6 million in new flows, respectively.
BlackRock’s iShares Ethereum Trust (ETHA), which posted the most robust inflows out of the group on July 23, only gathered $17.4 million from investors on July 24.
Ether ETFs posted net negative outflows on day two of trading. Source: Far SideThe new spot funds were weighed down by another heavy day of selling from the recently converted Grayscale Ethereum Trust (ETHE), which hemorrhaged $326.9 million in outflows.
Launched by Grayscale in 2017, ETHE allowed institutional investors to purchase ETH. However, it imposed a six-month lock-up period on all investments. Upon its conversion to a spot Ether fund on July 22, investors have been able to sell their ETH more easily.
In the two days following its conversion, ETHE has witnessed $811 million in outflows, meaning that existing ETHE investors have now sold off just over 9% of the fund’s holdings.
Related: Ethereum ETFs start strong but lag epic Bitcoin ETF launch — Analysts
The recent Ether ETF performance isn't unprecedented.
Spot Bitcoin ETFs posted cumulative net outflows for six out of ten of their first trading days, with many blaming Grayscale Bitcoin ETF bleeding.
ETH is currently trading for $3,172, down over 6.8% in the last 24 hours and 7.4% on the week, per TradingView data.
Ether’s souring price action came amid a wider sell-off in the equities market, with the SP 500 closing down 2.3% on the day.
ETH’s price tumbled sharply amid ETF outflows. Source: TradingViewNotably, ETH fell more sharply relative to Bitcoin, which only tumbled 2.6%. This is in line with Kaiko analyst Will Cai’s prediction that ETH’s price could be extremely “sensitive” to inflows following the launch of the ETFs.
Grayscale’s ETHE shed $484.4 million on its first day of trading as a spot Ether fund. However, robust inflows across the other eight products pushed cumulative net inflow to $106.6 million .
X Hall of Flame: Ethereum’s recent pullback could be a gift — Dynamo DeFi
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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