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At the forefront of this positive trend are BlackRock’s ETHA and Fidelity’s FETH which both saw considerable amounts of capital inflow last week.
In an overall sense, US spot Ethereum exchange-traded funds (ETFs) appear to be showing signs of positive growth. That is, despite recording notable outflows from some of its leading funds.
According to recent data released by James Butterfill, Head of Research at CoinShares, US spot Ethereum ETFs excluding Grayscale’s ETHE and ProShares’ EETH experienced an impressive net inflow of $1.183 billion for the week ending July 26, 2024.
During the week in view, Grayscale’s ETHE saw a net outflow of $1.513 billion while ProShares’ EETH saw $8 million leave the fund. If these were taken into consideration, the overall spot Ethereum ETFs market saw a total net outflow of $338 million last week.
However, a larger percentage of the funds recorded positive flows in the same week. This means that the broader Ethereum ETF market is currently gaining more attention and interest from investors.
At the forefront of this positive trend are BlackRock’s ETHA and Fidelity’s FETH, which both saw considerable amounts of capital inflow last week. While ETHA attracted an impressive $453 million in new investments, Fidelity’s FETH also saw a net inflow of $224 million for the week. Give or take, last week’s figures undoubtedly point to growing confidence among Ethereum investors, separate from the huge withdrawals experienced by Grayscale and ProShares.
Spot Ethereum ETFs: Old Money against New
Meanwhile, it might be worth mentioning that the data shared by Butterfill has also highlighted another interesting angle. It proves that a shift in dynamics might be playing out on the crypto investment scene. That is, with newer and potentially more agile funds drawing more capital than the old ones.
To put the above statement into perspective, last week, the overall Bitcoin spot ETF market had a net inflow of $535 million. While this does not exactly pale in comparison to what happened with Ethereum ETFs, it shows that investors may already be seeking opportunities beyond the more established spot BTC funds.
The massive inflow into ETFs like ETHA and FETH suggests that investors are weighing their options with alternative funds that they perceive as safer than what they have been used to.
While the massive withdrawals from BlackRock and Fidelity’s funds appear to have been caused by issues peculiar to their backing and personal strategies, it is clear that Ethereum continues to gain traction. If Ethereum ETFs can maintain the current momentum, the space is likely to experience further development. That is, they will be able to attract both expert and relatively new investors.
