Ethereum ETFs show mixed signals as ETHE reports $31M outflow

Crypto investments remain volatile as Ethereum ETF flows turn negative, highlighting the market’s rapid evolution.

Grayscale’s Ethereum Trust ETF, ETHE, has reported a single-day net outflow of $31.01 million, marking a return to negative flows after a brief pause. This data, revealed by Farside Investors, indicates that the historical net outflow of ETHE has now reached $2.327 billion.

According to the data, this reversal follows a day of zero flows on Aug. 12. Despite the negative flow for Grayscale’s ETHE, the overall market for Ethereum spot ETFs showed positive movement. On Aug. 13, the total net inflow for Ethereum spot ETFs was $24.3412 million.

Grayscale’s Ethereum Trust (ETHE) achieved a milestone on Aug. 12, marking its first day without any outflows, breaking a streak of consecutive daily withdrawals since its inception. This, in turn, caused the US spot Ether (ETH) ETFs to experience a flow reversal for the fifth time since launching on July 23.

This development coincided with a notable increase in onchain activity across Ethereum and its layer-2 networks.

Market dynamics and competition

Since its inception, ETHE has experienced a significant outflow of approximately $2.3 billion in Ether, representing a substantial 25% reduction of its initial $9 billion ETH holdings. 

This rapid decline occurred within just two and a half weeks, contrasting with the Grayscale Bitcoin Trust (GBTC), which took almost four months to achieve its first day without withdrawals. 

Related: Ether ETF weekly flows turn positive for first time since launch

However, Grayscale’s Ethereum Mini Trust ETF experienced a single-day net outflow of $0.00, maintaining a historical total net inflow of $221 million. This stability highlights the differing performance and investor confidence between Grayscale’s major and mini-trust ETFs.

BlackRock’s ETHA and Fidelity’s FETH lead

Significant inflows into other Ethereum spot ETFs further shaped the market dynamics. BlackRock’s iShares ETF, ETHA, led the pack with a single-day net inflow of $49.1244 million, boosting its historical total net inflow to $950 million. 

Fidelity’s ETF, FETH, also showed robust performance with a single-day net inflow of $5.4132 million, bringing its historical total net inflow to $351 million.

As of the latest data, the total net asset value of Ethereum spot ETFs stood at $7.649 billion, while the ETF net asset ratio, representing the market value as a percentage of Ethereum’s total market value, was 2.36%.

Despite the positive inflows, the historical cumulative net outflow for Ethereum spot ETFs has reached $377 million.

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