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While all nine Ethereum ETFs approved have experienced varying degrees of outflows, the Grayscale Ethereum Trust (ETHE) is by far the fund that has lost the most investment.
The United States spot Ethereum exchange-traded funds (ETFs) have recorded their longest streak of cumulative outflow. This follows after data from Farside Investors revealed that the funds have collectively lost investments for five straight days, marking their longest negative stretch since they launched on July 23.
While all nine Ethereum ETFs approved have experienced varying degrees of outflows, the Grayscale Ethereum Trust (ETHE) is by far the fund that has lost the most investment. As of August 21, ETHE has recorded over $2.5 billion in outflow. That is, after seeing money leave it daily, except for August 12 when the Grayscale fund recorded zero net flows.
US Spot Ethereum ETFs Outflows: Who Is to Blame?
Since launch, the daily cumulative flow of all the Ethereum ETFs has been taken into the records. Although there have been good days marked with positive flows, there have also been not-so-good ones where, overall, money exits the funds. Also, on some days, there are no positives or negatives as outflows balance out the inflows.
However, since August 15, there have been steady losses for the Ethereum ETF ecosystem. Over those five days, the ETFs saw their longest streak of outflows, losing $92.2 million in the process.
Meanwhile, it might be worth noting that the Grayscale ETHE played a huge part in this recorded outflow. The ETHE fund alone saw $158.6 million leaving it over the last five days. However, some tangible inflows from BlackRock’s iShares Ethereum Trust ETF (ETHA), Fidelity Ethereum Fund (FETH), and Bitwise Ethereum ETF (ETHW), meant that the total outflows were reduced by a bit.
Interestingly, though, Grayscale ETH fund continues to maintain its positive inflow and has still not recorded an outflow since launch.
Comparing with Bitcoin Counterparts
BlackRock’s ETHA set a new record within the week by becoming the first Ethereum ETF to see $1 billion in net inflows. Despite ETHA’s show of resilience, however, the net Ethereum ETF investments remain on the negative side with a total flow of $458.5 million.
Interestingly, spot Bitcoin ETFs are a stark opposite of this reality. From all indications, they continue to attract real interest from institutional investors, with their flow currently standing at a net positive of $17.5 billion.
This interest is proven by the same Farside Investors data, which shows that the spot Bitcoin ETFs saw positive flows for eight out of the last 10 days.
More statistics show that the Bitcoin ETFs saw their cumulative inflow peak on August 20, with a flow of $88 million, their highest in two weeks. As is with the Ethereum ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) also led the charge and was responsible for raking in $55.4 million of the total.
Overall, it appears that BlackRock ETFs suggest that investor attraction at this point is likely more linked to the reputation of the firm backing it rather than their interest in the underlying asset of the product.
