Spot Ethereum ETFs Are 1-Month Old – Here’s How They’ve Performed So Far

It’s been a day over a month since Spot Ethereum Exchange Traded Funds (ETFs) launched, marking a significant milestone for the investment asset. Over this short period, Spot Ethereum ETFs have experienced varying levels of demand, with significant inflows during peak times and reduced market interest at other moments. 

According to data from Farside Investors, Spot Ethereum ETFs have been witnessing more outflows than inflows since its launch on July 23. Despite expectations of a strong demand and performance, these investment products have recorded a staggering $465 million in outflows. 

These outflows have been spearheaded by Grayscale’s Ethereum Trust (ETHE), causing Grayscale’s ETF outflows to overshadow all inflows into Spot Ethereum ETFs. On the launch day alone, Grayscale recorded an outflow of $484.1 million, marking the highest daily outflow observed in the first month of Spot Ethereum ETFs launch.  

In contrast, BlackRock’s iShares Ethereum Trust ETF (ETHS) experienced a total inflow of more than $1 billion. Notably, on July 23, Spot Ethereum ETFs witnessed the largest single day inflows since its release, with BlackRock leading the way with a whopping $266.5 million in inflows. 

In total, there are nine Spot Ethereum ETFs in the United States (US), primarily BlackRock’s ETHS and Fidelity’s Ethereum Fund (FETH) leading in inflow gains. Although Spot Bitcoin ETFs saw one of the most successful ETF launches in history, Ethereum ETFs have seen a relatively underwhelming performance in comparison. 

The decreased demand for Spot Ethereum ETFs may stem from investors’ preference for Bitcoin, the largest and most popular cryptocurrency in the space. Bitcoin’s dominant position in the crypto market likely fuels the significant increase in demand for its ETF. 

On the other hand, Ethereum (ETH) is classified as the largest altcoin, but generally viewed as less dominant than Bitcoin, both in price and overall market influence. Excluding the brief surge following its launch, recent demand for Spot Ethereum ETFs has been unexpectedly low. 

Farside Investors reported that since August 15, Ethereum Spot ETFs have recorded mostly outflows, while BlackRock and several other ETFs have experienced zero flows. This drop in demand underscores investors’ overall weak interest and sentiment in these investment products. 

In a recent X (formerly Twitter) post, crypto analyst, Ted Pillows said that outflows from Spot Ethereum ETFs could be nearing an end. He highlighted that, over the past few days, Ethereum Spot ETFs have been significantly negative, driven by outflows from Grayscale’s Ethereum ETF.  

On a positive note, Pillows has observed a steady decrease in outflows from Grayscale’s ETHE. As a result, he suggests that this trend could signal an impending price breakout for Ethereum as the outflows diminish. 

 Featured image from Gadgets 360, chart from TradingView