Ethereum ETFs Experience Extended Outflows as Investment Interest Diminishes

Ethereum exchange-traded funds (ETFs) in the United States are facing substantial outflows, a trend that contrasts sharply with the continual investment influx seen in Bitcoin ETFs.

The spot Ether (ETH) ETFs have now recorded their longest stretch of investment withdrawals, marking five consecutive days of outflows since their inception on July 23.

The investments from a newly approved group of nine Ethereum ETFs have been significantly impacted by the larger outflows from the Grayscale Ethereum Trust (ETHE), which have surpassed $2.5 billion as of August 21.

Data from Farside Investors indicates that ETHE has seen daily outflows, with the exception of August 12, when there was no net change in figures.

During the recent five-day period from August 15 to August 21, the entire ETH ETF segment experienced an outflow of $92.2 million.

Mitigating Grayscale Outflows

During this timeframe, the Grayscale ETHE experienced $158.6 million in outflows. However, the inflows from BlackRock’s iShares Ethereum Trust ETF (ETHA), Fidelity Ethereum Fund (FETH), and Bitwise Ethereum ETF (ETHW) helped to offset these losses to some degree.

In contrast, the Grayscale ETH fund has maintained a positive cash flow of $231.9 million since its launch, with no recorded outflows.

Notably, ETHA became the first Ethereum ETF to achieve $1 billion in net inflows as of August 20. Currently, the total net investments in ETH ETFs stand at a negative $458.5 million.

For those interested in learning more, an informative guide on spot Ethereum exchange-traded funds is available.

Bitcoin ETFs Continue to Attract Capital

Conversely, Bitcoin (BTC) ETFs that launched in January 2024 have amassed an impressive net inflow of $17.5 billion. These Bitcoin ETFs have retained a favorable financial outlook, despite the $19.6 billion outflows from the Grayscale Bitcoin Trust (GBTC).

The Bitcoin ETFs have reported positive capital flows for eight out of the last ten days, with an inflow of $88 million recorded on August 20, marking their highest influx in two weeks, according to Farside Investors data.

Leading this trend, BlackRock’s iShares Bitcoin Trust (IBIT) reported an inflow of $55.4 million, bringing its total net inflow to $20.5 billion since its launch in January.