Key Points
- On August 1st, U.S. Ether ETFs saw a net inflow of $26.7 million, led by ETHA.
- Grayscale Ethereum Trust (ETHE) experienced $2 billion in outflows, indicating a significant shift in investor sentiment.
Despite $2 billion in cumulative outflows from the Grayscale Ethereum Trust (ETHE), recent trends in U.S. Ethereum ETFs tell a different story.
Ethereum ETF Flow Analysis
On August 1st, Ether ETFs experienced a surprising turnaround with a net inflow of $26.7 million. This was largely due to an $89.6 million inflow into BlackRock’s iShares Ethereum Trust (ETHA). Meanwhile, ETHE saw inflows of $78 million, according to Farside Investors data.
Investor and entrepreneur, Ted Pillows, commented on these developments, saying, “Ethereum ETFs had a net inflow of $33,700,000. BlackRock bought $118,000,000 $ETH. ETH is just getting started, my bags are ready.”
Shift in Trend
This development is noteworthy as Ether ETFs had primarily been recording outflows since their launch on July 23rd. However, there were exceptions on the 23rd of July, the 30th of July, and the 1st of August when the trend was primarily positive.
While ETHE experienced the largest outflows since the inception of ETH ETFs, inflows into BlackRock’s iShares Ethereum Trust (ETHA) around August 1st surpassed these outflows, indicating a significant shift in the ETF landscape.
Unlike the eight-spot Ether ETFs introduced as “newborn” funds on the 23rd of July, ETHE was an established trust offering institutional exposure to Ether. Prior to its recent conversion, ETHE held a significant $9 billion in Ether. However, by August 1st, outflows from ETHE had exceeded 22% of its initial value, highlighting a significant shift in investor sentiment, despite the overall positive movement in Ether ETF inflows.
Despite the recent positive shift in ETH ETF performance, not all investors are satisfied. Simon Dedic, Founder and CEO of Moonrock Capital, remarked, “Despite the ETF going live, $ETH has been the worst performing asset MTD of the whole Top 50.” He suggested that, given the current poor performance of ETH, this situation might present a compelling buying opportunity.
At the time of writing, ETH was trading at $3,143.34, reflecting a 1.67% decline over the past 24 hours. However, despite this drop, an analysis using data from IntoTheBlock indicated that bullish sentiment was outpacing bearish sentiment.
