In what is certainly an interesting development, Spot Ethereum ETFs have started August on a positive note, fending off Grayscale’s combined $1 billion worth of outflows. Indeed, the ETh investment offerings posted a net inflow of $26.7 million. That was led by $10 trillion asset manager BlackRock’s ETH offering.
The product has not yet had the impact of Bitcoin’s ETF, that began trading in January. Many have looked to Grayscale’s outflow concerns as a major issue for the newly approved ETH ETFs. Yet, some experts believe that issue will begin curtailing in the coming weeks.
Source: CNBC
Also Read: Ethereum ETF: $26.7 Million Inflow in Crypto Investments
BlackRock Leads Ethereum ETF Inflows in Positive Turn
The crypto market has seen ETFs dominate discussion this year. Its two top assets have both received the investment vehicle this year, but to differing results. With ETH entering its second week, things are starting to look up. This is despite some worry derived from one issuer.
Indeed, Ethereum ETFs were able to start August on a positive note despite Grayscale’s combined $2 billion in its Ether Trusts. Alternatively, BlackRock led all ETH offerings in inflows. Specifically, $89.6 million was sent into its iShares Ethereum Trust (ETHA), according to Faride Investors data.
Grayscale is in a different position than the other eight issuers. The firm is converting a trust that offers ETH exposure to institutional clients. That trust originally held $9 billion in Ethereum. Since the ETF conversion, outflows have exceeded 22% of those funds, as of August.
Also Read: BlackRock Exec Praises Ethereum, Says Solana ETF Will ‘Take a While’
Steno Research analyst Mads Eberhardt took to X (formerly Twitter) to discuss the outflow issue. In terms of when the issue would cease, he said “it is likely that it will happen this week.” Moreover, he noted it would be “only up from there.”
Ethereum’s price has not yet been able to capitalize from the ETFs. Over the last seven days, the token has fallen more than 2.7%, according to CoinMarketCap. The last month has seen that decline extend to 8%, while it is currently trading at $3,154.
