Grayscale ETHE saw a net outflow of $31 million, reversing the previous day’s breakeven flow, likely due to concerns over Grayscale’s ability to convert ETHE shares into real Ethereum.
The US Ethereum exchange-traded funds (ETFs) recorded a modest net inflow of $24.34 million on 13 August 2024, marking two straight days of inflows from the start of the week. However, in contrast to this positive trend, Grayscale‘s Ethereum Trust (ETHE) witnessed a return of net outflow.
However, inflows from the three spot ETFs balance the negative outflow impact from the Grayscale’s ETHE, according to the data from SoSoValue. Blackrock’s iShares Ethereum Trust (ETHA) led the pack with a $49.12 million net inflows – a turnaround from the previous day’s zero flow.
Other than Blackrock’s ETHA, Fidelity’s FETH and Inveco’s QETH saw $5.41 million and $813,690, respectively. The investor interest in spot Ether ETFs suggests a growing appetite for regulated exposure to the world’s second-largest cryptocurrency.
Photo: SoSoValue
Grayscale ETHE Loses Momentum
Only Grayscale’s ETHE saw a net outflow of funds among all Ether ETFs. As per SosoValue, $31 million left the fund, reversing the previous day’s breakeven flow. This was likely due to worries that Grayscale cannot convert ETHE shares into real Ethereum at present. New rival spot Ether ETFs might also be attracting some demand away from ETHE now.
Similar to the spot Ether ETF market, Bitcoin (BTC) ETFs in the US continued to see net inflows on Tuesday. The 12 spot Bitcoin ETFs collectively registered $38.94 million, with BlackRock’s industry-leading iShares Bitcoin Trust (IBIT) contributing the most at $34.55 million.
Even though net flows of spot Ether and Bitcoin ETFs were positive, the total trading volume decreased compared to the previous day. The overall daily trading volume for spot Ether ETFs was around $191 million on Tuesday, down from $285.9 million on Monday. Similarly, the daily volume of the Bitcoin ETFs was $1.18 billion, which is a little bit lower than the $1.3 billion traded on Monday.
Crypto ETFs Shift Market Momentum
The contrasting fortunes of spot Ether and Bitcoin ETFs on Tuesday highlight the dynamic nature of the crypto ETF market. While spot Ether ETFs are attracting new investors, Grayscale’s ETHE faces challenges. Meanwhile, Bitcoin ETFs continue to see steady inflows, solidifying Bitcoin’s position as a leading investment within the crypto space.
At the time of writing, Ethereum is trading at $2,733, marking a 3.60% gain in the last 24 hours, according to the CoinMarketCap. Despite this recent surge, the trading volume for this crypto declined by 30% in the same period. Looking at the weekly chart, ETH is 8.60% up, while on the monthly timeframe, it has lost momentum with a 14.80% decline.
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