Ethereum ETF inflows positive for the first time on a weekly basis

ETH ETF inflows positive for the first time on a weekly basis

Although Ethereum has weakened again recently, ETH ETFs were able to generate stable inflows. A ray of hope at the end of the tunnel?

• The recently launched Ethereum ETFs recorded net inflows for the first time last week. This is shown by data from Farside Investors.
  

• Despite massive distortions on the crypto market, more than USD 104 million flowed into ETH ETFs between August 5 and 9. In total, these now hold just under USD 7.3 billion.
  

• The majority of the inflows were recorded by the product of asset manager BlackRock (ETHA) with USD 188 million. This compensated for the massive outflows from the Grayscale fund ETHE, which sold USD 179 million in ETH.
  

• Overall, BlackRock has recorded inflows of just under one billion US dollars since its launch, followed by the Fidelity ETH ETF (FETH) with 341 million US dollars. However, due to the enormous outflows from the Grayscale fund, all ETFs recorded a total loss of USD 406 million.

Cumulative flows of Ethereum spot ETFs in millions of US dollars | Source: Farside Investors

• The development was to be expected given the similar start of Bitcoin holdings. The launch of these in January saw large outflows from Grayscale's GBTC funds, before the ETFs as a whole posted record-breaking gains.
  

• As with its GBTC ETF, Grayscale also opted for a high management fee for ETHE, which apparently displeases investors. Even the launch of a low-cost "mini-ETF" did little to stem the outflows.
  

• The relatively strong inflows into the ETFs are currently a ray of hope for ETH, as the second-largest cryptocurrency is one of the blatant underperformers of the current cycle.
  

• Following the recent price slump, ETH has given up the gains it made this year. Meanwhile, its major competitor, Solana, reached a new all-time high against Ethereum.
  

• Meanwhile, historically low network fees and the weakening token burn mechanism point to a decrease in user activity