Ethereum spot exchange-traded funds (ETFs) experienced a net inflow of $5.8 million, marking a positive movement after nine consecutive days of net outflows. Among the key players, BlackRock’s ETHA ETF saw the largest inflow, attracting $8.4 million, followed by Fidelity’s FETH ETF with an inflow of $1.3 million. However, Grayscale’s ETHE ETF experienced an outflow of $3.8 million, reflecting ongoing selling pressure despite the overall positive trend. The total net inflow for Ethereum spot ETFs on August 28 was $5.8 million, the first net inflow recorded after nine days of outflows.
The recent outflows in Ethereum ETFs extended to a nine-day streak, the longest since their launch last month, bringing the total net flow to nearly $500 million. Analysts from JP Morgan had predicted weaker flows for Ethereum ETFs compared to Bitcoin ETFs due to factors like the absence of staking and lower liquidity. The outflows observed in Grayscale’s ETHE ETF exceeded expectations, leading to discussions among asset managers about the potential launch of a combined Bitcoin and Ethereum spot ETF. Bitcoin spot ETFs also faced challenges on the same day, with a total net outflow of $105 million, including outflows from Grayscale ETF GBTC, Grayscale mini ETF BTC, and ARKB.
In other news, BlackRock debuted its Ethereum ETF on Brazil’s stock exchange, B3, on August 28, expanding its cryptocurrency offerings internationally. The ETF, available under the ticker symbol ETHA39, is open to both retail and institutional investors in the country through a depositary receipt. The iShares Ethereum Trust by BlackRock (ETHA) will be priced at one-third of its original value in the Brazilian market, making it more accessible to local investors. Management fees are set at 0.25% annually, which will be reduced to 0.12% in the first year or until the fund reaches $2.5 billion in assets under management.
BlackRock previously introduced its iShares Bitcoin Trust in Brazil through a depositary receipt, noting significant demand for the product. With the launch of its Ethereum ETF in Brazil, BlackRock is tapping into a market that has allowed the trading of crypto-tied products on its stock exchange, with a total of 15 ETFs or depositary receipts linked to digital assets. Brazilian regulators recently approved the world’s first spot Solana-based ETF, further expanding the range of digital asset offerings available to investors in the country.
In conclusion, Ethereum spot ETFs saw a positive net inflow after a series of outflows, with BlackRock’s ETHA ETF leading the way. The outflows in Grayscale’s ETHE ETF exceeded expectations, prompting discussions about a potential combined Bitcoin and Ethereum spot ETF. BlackRock expanded its cryptocurrency offerings by listing its Ethereum ETF on Brazil’s stock exchange, providing local investors with more access to digital assets through a depositary receipt. Brazilian regulators have been proactive in approving various ETFs and depositary receipts linked to digital assets, signaling a growing interest in cryptocurrencies among investors in the country.
