U.S. spot Ether exchange-traded funds (ETFs) have been experiencing meager inflows while outflows from the Grayscale Ethereum Trust (ETHE) continue. On August 1, Ether ETFs saw a net inflow of $26.7 million, primarily driven by an inflow of $89.6 million into BlackRock’s iShares Ethereum Trust (ETHA). Conversely, Grayscale’s Ethereum Trust experienced outflows of $78 million on the same day, totaling over $2 billion in outflows since its conversion to a spot ETF. Grayscale’s ETHE, originally a trust providing institutional investors with exposure to Ether, has now seen outflows exceeding 22% of its initial fund value as of August 1. Analysts suggest that a slowdown in outflows from ETHE may serve as a bullish indicator for ETH prices.
It is expected that the net outflow in Ethereum ETFs will subside soon, indicating a potential price increase for ETH. Price sensitivity to inflows into spot products was noted by Will Cai, head of indexes at Kaiko, who stated that ETH’s price would be “sensitive” to such inflows. As of the time of publication, ETH was trading at $3,168, having dropped 8.5% since the ETFs were launched. While the outflows from Grayscale’s ETHE continue, analysts like Mads Eberhardt of Steno Research believe that a slowdown in outflows could lead to a positive price movement for ETH. This sentiment is echoed in the data showing that ETH’s price may see an increase when outflows diminish.
In contrast to Ether ETFs, spot Bitcoin ETFs in the U.S. reported a total daily net inflow of $50.64 million on Thursday, with Grayscale’s Bitcoin Mini Trust leading the inflows at $191.13 million. BlackRock’s IBIT also saw inflows of $25.9 million. However, these inflows were offset by net outflows from five U.S. funds, including Grayscale’s GBTC, which experienced $71.33 million in outflows on Thursday. Despite the outflows, the total daily trading volume for the 12 Bitcoin ETFs amounted to approximately $2.91 billion on Thursday, compared to $1.37 billion on Wednesday. Since January, spot Bitcoin products have had a total net inflow of $17.74 billion.
The digital asset investment landscape continues to attract significant interest, with inflows remaining positive for the fourth consecutive week. In the previous week, the sector saw an influx of $245 million, with year-to-date inflows reaching a record $20.5 billion. Bitcoin products have been particularly attractive to investors, with inflows last week totaling $519 million and month-to-date inflows amounting to $3.6 billion. Year-to-date inflows for Bitcoin products have reached a record $19 billion. Despite the inflows, the two largest spot Bitcoin ETFs—BlackRock’s IBIT and Grayscale’s GBTC—traded down about 3% on Thursday, as per The Block’s Bitcoin ETF Tracker.
Overall, the investment landscape for digital assets, including Ether and Bitcoin ETFs, continues to be dynamic, with fluctuations in inflows and outflows impacting market prices. While Ether ETFs face challenges with outflows, Bitcoin products have seen substantial inflows, contributing to a positive investment trajectory. As the market continues to evolve, investors and analysts will closely monitor these trends to gauge the potential impact on cryptocurrency prices and market dynamics.
