Ethereum ETFs face $113 million net outflows on their second day, primarily due to $327 million in sales from Grayscale's recently converted Ethereum Trust.
The newly launched spot Ethereum ETFs witnessed a net outflow of $113.3 million on their second trading day, largely impacted by significant outflows from Grayscale's recently converted Ethereum Trust. Despite positive inflows for most of the new funds, Grayscale's heavy sell-off overshadowed the overall performance.
Key Points:
Day Two Outflows:
The net outflow of $113.3 million for Ethereum ETFs on their second day.
Grayscale’s Ethereum Trust (ETHE) saw $326.9 million in outflows.
ETF Performance:
Seven out of the eight new ETFs posted net inflows.
Fidelity’s Ethereum Fund (FETH) led with $74.5 million, followed by Bitwise Ethereum ETF (BITW) with $29.6 million.
BlackRock’s iShares Ethereum Trust (ETHA) gathered $17.4 million.
Impact of Grayscale’s Conversion:
Grayscale's Ethereum Trust, launched in 2017, converted to a spot Ether fund on July 22.
This conversion allowed easier selling, resulting in $811 million in outflows over two days.
Investors sold over 9% of ETHE’s holdings post-conversion.
Market Context:
Ether’s price dropped by over 6.8% in the last 24 hours, influenced by broader market sell-offs.
Comparatively, Bitcoin only dropped by 2.6%.
The S&P 500 also closed down 2.3% on the same day.
Historical Comparison:
The pattern of outflows mirrors the initial performance of spot Bitcoin ETFs, which faced similar challenges from Grayscale's Bitcoin ETF.
The newly launched Ethereum ETFs faced a challenging second day with significant net outflows driven by Grayscale’s large-scale sell-off. While individual ETFs showed promising inflows, the overall market reaction and broader equity sell-offs added to the downward pressure on Ether’s price.
Source: Cointelegraph
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