In a notable shift in the Ethereum investment landscape, daily net inflows into U.S. spot Ether exchange-traded funds (ETFs) have turned positive again, despite significant outflows from Grayscale’s Ethereum Trust. On August 1, spot Ether ETFs experienced a net inflow of $26.7 million, largely driven by a substantial $89.6 million influx into BlackRock’s iShares Ethereum Trust (ETHA), according to data from FarSide Investors.
Conversely, Grayscale’s Ethereum Trust, which saw outflows of $78 million on the same day, has now accumulated over $2 billion in cumulative outflows since its conversion to a spot fund. This trust, which was converted from ETHE to a spot ETF on July 23, had previously held $9 billion in Ether. The recent outflows represent approximately 22% of the fund’s initial holdings.
The recent trend has not gone unnoticed by analysts. Mads Eberhardt, a senior analyst at Steno Research, predicts that the large-scale outflows from Grayscale’s ETHE will likely diminish by the end of the week. Eberhardt suggests that a reduction in outflows could serve as a bullish indicator for Ethereum's price, stating, "When it does, it’s up only from there," in a recent post on X (formerly Twitter).
Similarly, Will Cai, head of indexes at Kaiko, had previously highlighted that ETH’s price would be particularly responsive to inflows into spot ETFs. Reflecting this sensitivity, Ethereum is trading at $3,168 at the time of publication. This represents an 8.5% decline since the launch of the ETFs on July 23, as noted by TradingView data.
Overall, while Grayscale's Ethereum Trust continues to face significant outflows, the positive net inflows into spot Ether ETFs signal a growing interest in Ethereum and its related investment products. This shift may have important implications for the cryptocurrency's market dynamics in the coming weeks.
August 2024, Cryptoniteuae