Spot Ethereum ETFs (Exchange-Traded Funds) have registered their first green day after a four-day negative streak. A week after its launch, the massive outflows, led by Grayscale’s Ethereum Trust (ETHE), have outshined the remarkable start of the ETH-based investment products.
Ethereum ETFs Performance Outshined By Outflows
The approval of spot Ethereum (ETH) ETFs was surrounded by discussions about its demand and possible performance after the launch. Many experts anticipated that the investment products would not achieve the same numbers as their Bitcoin-based counterparts, citing a lack of a “clear narrative,” media attention, and demand.
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Some industry figures, including Bitwise’s CCO Katherine Dowling, and American entrepreneur Anthony Pompliano, considered that the Ethereum ETFs would only do about 20%-30% of the BTC-based funds. The investment products had a remarkable start, meeting experts’ expectations on their first day. The funds registered $1.05 billion in volume, around 24% of what Bitcoin ETFs did on launch day, and $107.8 million in inflows. This feat was achieved regardless of the $484 million net outflows registered from ETHE.
However, Ethereum ETFs ended with red numbers after their second day live. The funds saw a 5% volume drop on Wednesday and a negative net flow of $113.3 million. Despite the outflows, some analysts suggested that the performance surpassed expectations, as the volume didn’t significantly drop after the day-one frenzy.
According to Farside Investor’s data, ETH ETFs’ outflows surpassed the positive net flows in the following days. By July 29, the investment products had an average daily outflow of $137.8 million and a total outflow of $440.1 million among all nine ETFs.
First Green Day Ends Negative Net Flow Streak
The four-day negative streak ended on July 30, after spot Ethereum ETFs registered their first green day since launch. Led by Blackrock’s iShares Ethereum Trust (ETHA)’s $118 million inflows, the funds saw a positive net flow of $33.7 million on Tuesday.
Ethereum ETF's net flows on July 30. Source: Farside Investors
ETHE had a negative net flow of $120 million, the lowest since the spot ETFs launch. Additionally, the fund had a 75% decline in outflows from its $480 million negative performance on day one. This decline suggests that the Grayscale’s bleeding, worth around $1.84 billion on July 30, is slowing down, and the funds could continue with a positive streak.
Meanwhile, ETHA crowned itself the best-performing Ethereum ETH after recovering from a disappointing second day. A week after its launch, the fund has had a total positive net flow of $618.2 million.
As ETF Store President Nate Geraci stated, ETHA has already positioned itself in the top 15 inflows of all ETFs launched this year. “Top 15 out of approx. 330 new ETFs. Top 4 inflows all spot bitcoin ETFs, btw,” the post reads.
Senior crypto analyst at Steno Research, Mads Eberhardt, highlighted that Blackrock’s ETHA and Fidelity’s FETH have seen one-third of the inflows of their respective Bitcoin counterparts.
Eberhardt emphasized that this performance has been achieved despite several disadvantages against Bitcoin ETFs:
This has occurred despite overall less attention to the Ethereum ETFs, a less-than-optimal month to launch, full awareness by the market that Grayscale’s Ethereum ETF must be drained in the short-term, and, oh yes, the fact that Ethereum has half the market cap of Bitcoin at ETF launch with even worse liquidity.
Ultimately, the Senior analyst believes that outflows from spot Ethereum ETFs will subside at the end of this week, and “When it does, it’s up only from there.”
ETH is trading at $3,330 in the five-day chart. Source: ETHUSDT on TradingView
