Spot Ether ETFs Defy Market Trends with $104.8M in Net Inflows
Spot Ether ETFs – In a significant development for the cryptocurrency market, spot Ether exchange-traded funds (ETFs) in the United States experienced their first week of positive net inflows since their launch on July 23. This comes as a bright spot amid a broader market downturn for Ether (ETH).
Positive Inflows Amid Price Decline
According to data from ETF tracker SoSoValue, the nine newly launched U.S.-based spot Ether ETFs reported positive overall net inflows of $104.8 million for the week starting August 5. This influx occurred despite a substantial decline in the price of Ether, which has plummeted 23% since the beginning of August.
The total value traded across these funds reached a staggering $1.9 billion, bringing the total net assets under management to $7.3 billion as of August 9.
Top Performers
Of the nine ETFs, six recorded positive net flows for the week. Leading the pack was BlackRock’s iShares Ethereum Trust, which saw a massive inflow of $188.4 million. The BlackRock fund, in just 13 days of trading, has amassed over $900 million in assets and has yet to experience an outflow day, highlighting investor confidence in its offering.
Fidelity’s Ethereum Fund followed as the second highest gainer, with $44.65 million in inflows, bringing its total assets to $342 million. Other notable ETFs with aggregate inflows included Grayscale’s Mini Ethereum Trust with $19.8 million, VanEck Ethereum ETF with $16.6 million, Bitwise Ethereum ETF with $11.7 million, and Franklin Ethereum ETF with $3.7 million.
Outflows and Market Dynamics
However, not all funds fared equally. Grayscale’s Ethereum Trust, a significant player in the market, faced a substantial outflow of $180 million during the same period. This continued trend of outflows has brought the total assets under management for Grayscale’s spot Ether ETF down to $2.3 billion, contributing to an overall outflow of $406.4 million across all nine funds.
Despite the challenges faced by Grayscale, the overall market sentiment appears cautiously optimistic, as ETF issuers are actively working to expand their offerings.
Future Outlook
In a move to further enhance their product suite, ETF issuers are now focusing on getting options products launched for their spot Ether funds. On August 7, the NYSE American proposed a rule change that would allow it to list and trade options contracts for three Ether ETFs from Grayscale and Bitwise.
This strategic push towards options products is seen as an effort to cater to a broader range of investors and enhance the liquidity and attractiveness of spot Ether ETFs in the U.S. market.
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