In a surprising turn of events, US-listed spot Ethereum exchange-traded funds (ETFs) have experienced their first week of net inflows since their highly anticipated launch on July 23. This comes amidst a turbulent period for the cryptocurrency market, with Ether (ETH) plunging by 23% since the start of August.
According to data from ETF tracker SoSoValue, the collective nine spot Ethereum ETFs garnered a net inflow of $104.8 million during the week commencing August 5. This influx of capital, totaling $1.9 billion in traded value, has boosted their combined net assets to $7.3 billion as of August 9.
Leading the charge is BlackRock’s iShares Ethereum Trust (ETHA), which has amassed over $900 million in just 13 trading days without a single day of outflows. Other notable performers include Fidelity Ethereum Fund (FETH), Grayscale’s Mini Ethereum Trust (ETH), VanEck Ethereum ETF (ETHV), Bitwise Ethereum ETF (ETHW), and Franklin Ethereum ETF (EZET).
However, these positive inflows are offset by the continued outflow of assets from Grayscale’s flagship (ETH) Trust (ETHE), which shed a substantial $180 million during the same period. This trend has contributed to a net outflow of $406.4 million for all nine funds, according to Farside Investors.
Also Read: Ethereum ETFs Face Turbulent Debut, Outflows Hit $169.4 Million
Despite the market volatility, ETF issuers are pressing ahead with their expansion plans. On August 7, the NYSE American LLC proposed a rule change to enable the listing and trading of options contracts for three ETH ETFs from Grayscale and Bitwise.
The unexpected inflow into spot Ethereum ETFs during a market downturn is a testament to the growing investor interest in gaining exposure to the world’s second-largest cryptocurrency through traditional investment vehicles. As the ETF landscape continues to evolve, it will be interesting to observe how these funds perform in the long term and their impact on the broader cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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