The positive inflow is attributed primarily to a reduction in withdrawals from Grayscale’s Ethereum Trust (ETHE).
By Leon Okwatch
Edited by Julia Sakovich
Updated
3 mins read
For the first time since their introduction, spot Ethereum exchange-traded funds (ETFs) have registered a net positive inflow.
According to data from Farside Investors, these funds collectively saw an inflow of $33.6 million on July 30, marking a significant turnaround from a recent period of extensive outflows.
This recent shift in fund flows follows a period where nearly $547 million had exited Ethereum ETFs over just four days. The positive inflow is attributed primarily to a reduction in withdrawals from Grayscale’s Ethereum Trust (ETHE). On July 30, ETHE saw its smallest outflow in recent times, totaling $120.3 million – far less than earlier outflows. This reduction aligns with predictions from analysts who had forecasted a potential easing in ETHE’s outflow trends.
Among the ETFs that experienced inflows, BlackRock’s iShares Ethereum ETF (ETHA) led with a substantial $117.9 million in new investments. Fidelity’s Advantage Ether ETF (FETH) attracted $16.4 million, while the Bitwise Ethereum Fund (ETHW) and Franklin Templeton’s Ethereum ETF (EZET) gained $3.5 million and $3.7 million, respectively. Conversely, several other Ethereum ETFs showed minimal changes in their inflows or outflows.
The positive shift in Ethereum ETFs contrasts with Bitcoin ETFs, which saw $18 million in outflows on the same day. This suggests a growing preference for Ethereum over Bitcoin among investors at this time. BlackRock’s ETHA has been particularly successful since its launch on July 23, attracting $618 million in inflows and establishing itself as a leading player in the ETF market.
Analysts suggest that the reduction in Grayscale’s outflows could indicate a broader stabilization in Ethereum’s market, potentially reversing the recent downward trend. If this positive sentiment continues, it may signal a more stable period for Ethereum investors.
The timing of this positive inflow also coincides with Ethereum’s ninth anniversary. Since its launch in 2015, Ethereum has evolved significantly, establishing itself as a key player in the blockchain space. The network’s recent upgrades and transition to a proof-of-stake model have reinforced its position.
In its nine-year journey, Ethereum has reached impressive milestones. The network has handled 2.45 billion transactions across 20.4 million blocks, according to Etherscan. It now hosts over 1,000 projects and boasts a Total Value Locked (TVL) of 58.8 billion in assets, as shown by DeFiLlama. With more than 7 million active users and over 1 million validators, Ethereum’s ecosystem remains both dynamic and extensive.
Ethereum’s market capitalization has surpassed $400 billion, securing its position among the top 25 global assets. This anniversary comes at a time when there’s a notable increase in the network’s prominence within the cryptocurrency space. The launch of spot Ethereum ETFs in the US marks a significant advancement, highlighting increasing institutional interest and confidence in Ethereum.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Leon is a seasoned blockchain writer and reporter, dedicated to uncovering the stories behind decentralized technologies. He excels in providing in-depth analysis and thought leadership in blockchain media. His reporting sparks meaningful conversations and fosters a deeper understanding of the transformative potential of blockchain.
