Ether ETFs Saw $340M of Negative Outflows in Their First Week

Spot
ether

(ETH)
exchange-traded
funds
saw
negative
net
flows
in
their
first
week
as
massive
outflows
from
the
incumbent
Grayscale
Ethereum
Trust
(ETHE)
overwhelmed
interest
in
the
competing
products.

Similar
bitcoin

(BTC)
funds,
which
debuted
in
January,
raked
in
$1
billion
net
inflows
during
the
first
four
days,
even
as
they
too
suffered
sizable
outflows
from
a
previously
existing
Grayscale
fund.

Overall
the
spot
ETH
ETFs
endured
$340
million
in
net
outflows
with
more
than
$1.5
billion
exiting
from
the
Grayscale
Trust,
according
to

Farside
Investors.

The
price
action
seemed
to
reflect
the
lackluster
ETF
action,
with
ether
slipping
5%
last
week
while
bitcoin
added
2%.

Forgetting
Grayscale’s
ETHE,
the
other
newly
listed
ether
ETF
products
did
attract
$1.15
billion
inflows
last
week,
led
by
offerings
from
BlackRock,
Bitwise
and
Fidelity.

While
the
current
pace
of
outflows
from
ETHE
would
mean
the
fund
would
run
out
of
assets
in
the
next
four
weeks,
analysts
expect
that
they
could
start
tapering
off
as
early
as
this
week.

Quinn
Thompson,
founder
of
digital
asset
hedge
fund
Lekker
Capital,

pointed
out
that
ETHE
have
already
shed
the
same
amount
of
assets
as
GBTC
when
bitcoin
found
a
local
bottom
in
late
January
during
its
post-ETF
sell-off.
BTC
fell
15%
to
below
$39,000
in
two
weeks,
then
marched
on
a
rally
to
new
all-time
highs.

Mads
Eberhardt,
senior
crypto
analyst
at
Steno
Research,

noted
that
GBTC
outflows
significantly
subsided
after
the
eleventh
trading
session,
and
predicted
that
ETHE
could
follow
the
same
path.

“The
Ethereum
ETF
net
outflow
is
yet
to
subside,
but
it
is
likely
that
it
will
happen
this
week,”
Eberhard

said
in
a
Monday
X
post.
“When
it
does,
it’s
up
only
from
there,”
he
said.