Ethereum ETFs Experience Net Inflows After Nine Days of Outflows
Recent data shows that Ethereum spot exchange-traded funds (ETFs) have witnessed a net inflow of $5.8 million, marking the first positive movement after nine consecutive days of net outflows. Among the key players in the market, BlackRock’s ETHA ETF experienced the largest inflow, attracting $8.4 million according to SoSoValue data.
- Fidelity’s FETH ETF also contributed to the positive net flow with an inflow of $1.3 million.
- On the other hand, Grayscale’s ETHE ETF faced an outflow of $3.8 million, reflecting ongoing selling pressure despite the broader trend.
Ethereum Records Longest Outflow Streak
The recent net outflows of Ethereum ETFs extended to nine days, marking the longest streak of outflows since the funds started trading last month. The cumulative effect of these outflows brought the total net flow of Ethereum ETFs to nearly $500 million within the first five weeks of their launch.
- Analysts from JP Morgan anticipated weaker flows for Ethereum ETFs compared to Bitcoin ETFs, citing factors like the absence of staking and lower liquidity.
- Discussions among asset managers have emerged about launching a combined Bitcoin and Ethereum spot ETF in response to the unexpected outflows from Grayscale’s ETHE ETF.
BlackRock’s Ethereum ETF Debuts on Brazilian Stock Exchange
BlackRock is expanding its cryptocurrency offerings globally, with the recent listing of an Ethereum ETF on Brazil’s stock exchange, B3, under the ticker ETHA39. This move makes the ETF accessible to both retail and institutional investors in Brazil through a depositary receipt.
- The management fees for BlackRock’s iShares Ethereum Trust (ETHA) are set at 0.25% annually, aligning with U.S. rates.
- The ETF will be priced at one-third of its original value for the Brazilian market, enhancing accessibility for local investors.
- BlackRock previously introduced its iShares Bitcoin Trust in Brazil, which proved to be the fastest-growing ETF in history over a three-month period, signaling high demand.
Hot Take: More Positive Momentum Expected for Ethereum ETFs
As Ethereum ETFs experience a shift towards net inflows, indications point towards more positive momentum in the market. With an increased interest in cryptocurrency ETFs, especially Ethereum-based products, the future outlook remains optimistic for investors seeking exposure to digital assets.
Sources:
– SoSoValue Data
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