Spot Ether ETFs See Mixed Flows on Third Trading Day
US-based spot exchange-traded funds (ETFs) have experienced mixed flows on their third day of trading, with significant outflows from Grayscale’s Ethereum Trust causing some turbulence in the market.
Outflows Hit New Ethereum ETFs
Seven out of the eight newly launched spot Ether ETFs witnessed a combined $152 million in outflows on the third day of trading, as per data from SoSoValue.
- BlackRock’s iShares Ethereum Trust ETF and Grayscale’s Ethereum Mini Trust performed well, attracting $70.93 million and $28.09 million, respectively.
- Fidelity Ethereum Fund (FETH) and Bitwise’s Ethereum ETF (ETHW) also saw some positive net inflows.
Grayscale Outflows Impact on New ETFs
The new Ethereum ETFs faced challenges due to significant selling pressure from Grayscale’s Ethereum Trust, resulting in outflows of $346.2 million on the third day alone and over $1.15 billion since its conversion.
- Existing investors in the Grayscale Ethereum Trust have sold off more than 10% of the fund’s assets.
Ethereum ETF Trading Volume vs. Grayscale Outflows
Despite the strong inflows into the newly launched Ethereum ETFs, the Grayscale Ethereum Trust experienced $485 million in redemptions on the debut trading day.
- This outflow could be attributed to investors seeking cheaper alternatives or capitalizing on the ETF conversion for increased liquidity.
- On the same day, Ethereum traded 1.8% higher, closing at $3,247.
Hot Take: Insights on the Ether ETF Market
As the market continues to navigate the complexities of spot Ether ETF trading, it is essential for investors to stay informed about the impact of various factors, including Grayscale outflows and trading volumes, to make well-informed decisions.
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