Key Takeaways
- The historical cumulative net outflow for spot Ether ETFs has reached $341 million.
- On July 25 alone, Grayscale’s ETHE experienced net outflows totalling approximately $346 million
Outflows from the Grayscale Ethereum Trust ETF (ETHE) have surpassed $1.5 billion, with net outflows hitting $356 million in a single day on July 26. Data from SoSo Value indicates that July 26 was especially volatile for spot Ether exchange-traded funds (ETFs), with total net outflows amounting to $163 million.
On July 23, U.S. ETH ETFs began trading, drawing in over $1 billion on their first day. In contrast, Grayscale’s ETHE ticker, which had been trading on the OTC market, faced immediate and heavy outflows.
Grayscale’s Ethereum Trust, launched as a private placement in 2017 and publicly traded on OTC markets since 2019, introduced an ETF under the ETHE ticker on the NYSE on July 23. Despite the new ETFs enjoying substantial inflows, Grayscale’s existing ETF saw $1.16 billion in outflows over the past three days.
Grayscale’s newly converted Ethereum Trust ETF has experienced significant net outflows, with investors withdrawing over $1.5 billion since spot Ether ETFs launched in the United States on July 23.
On July 25 alone, Grayscale’s ETHE experienced net outflows totaling approximately $346 million. According to Farside data, the fund’s assets under management have decreased sharply from over $9 billion to $7.4 billion since its conversion, coinciding with the introduction of U.S. spot Ethereum ETFs.
In contrast, BlackRock’s iShares Ethereum Trust (ETHA) led the inflow charts on July 26, with $71 million in new investments. Grayscale’s new spinoff, the Ethereum Mini Trust (ETH), saw more than $58 million in inflows.
Other Ethereum funds like the Fidelity Ethereum Fund (FETH) and Bitwise’s Ethereum ETF (ETHW) also reported notable inflows of $34.32 million and $16.34 million, respectively. VanEck’s Ethereum ETF (ETHV) and the Invesco/Galaxy Ethereum ETF (QETH) saw smaller inflows of $8 million and $6.2 million, respectively, while some funds recorded no new flows at all.
Despite these gains for eight Ethereum ETFs, total combined net outflows reached $152.4 million on July 24, marking the highest since their market debut on July 23, primarily driven by large withdrawals from ETHE.
Originally launched in 2017, ETHE allowed institutional investors to purchase and hold Ethereum but required them to adhere to a six-month lock-up period. Since its transformation into a spot Ether fund on July 22, investors have been able to sell their holdings more freely.
The 2.5% management fee for ETHE is relatively high, prompting investors to switch to newer funds with lower fees. This pattern mirrors the situation with Grayscale’s Bitcoin ETF (GBTC), which saw over $5 billion in outflows in its first month post-conversion.
However, the recently converted Ethereum Mini Trust may provide a turnaround for Grayscale with its low 0.15% fee, making it one of the most cost-effective spot Ethereum funds in the U.S. The fund has seen growing inflows since becoming an ETF. On July 26, the ETF recorded a net inflow of $44.9 million, bringing the total net inflows to $164 million since its launch.
In the first few days of trading, BlackRock’s ETHA generated $354.8 million worth of net inflows, followed by Bitwise’s ETHW with $249.9 million and Fidelity’s FETH standing with $180.1 million.
The total net asset value of spot Ether ETFs currently stands at $9.2 billion. The ETF net asset ratio, which represents ETFs’ market value relative to Ethereum’s total market value, is at 2.36%. Despite these figures, the historical cumulative net outflow for spot Ether ETFs has reached $341 million.
