Spot Ether ETFs Attract $98M in Inflows; BlackRock’s Fund Reaches $870M Since Launch

Spot Ether exchange-traded funds (ETFs) saw a combined inflow of $98.4 million on August 6, marking their best day since their launch on July 23.

BlackRock’s iShares Ethereum Trust (ETHA) recorded substantial inflows of $109.9 million on the day, raising its total to $869.8 million since its launch on July 23.

The surge marked ETHA’s third-largest inflow day as investors capitalized on Ether’s recent 18% price drop on August 5, according to Farside Investors.

BlackRock’s Spot ETH Fund Among Top Six

The $870 million inflow positions BlackRock’s spot Ether ETF among the top six best-performing ETFs launched in 2024, noted Nate Geraci, President of The ETF Store.

He highlighted that four of the other top performers are spot Bitcoin ETFs, including BlackRock’s IBIT.

Enormous regulatory barriers still in place for spot btc & eth ETFs…

-No in-kind creation & redemption

-No options trading

-No staking on eth ETFs

And these products are still challenging & shattering ETF industry records.

Should tell you something about investor demand.

— Nate Geraci (@NateGeraci) August 7, 2024

Notably, ETHA attracted $47.1 million on “Black Monday” for the crypto industry, a day when over $600 million in leveraged long positions were liquidated.

Despite the market turmoil, the combined inflows for ETHA on August 5 and 6 placed it in the top 10% of ETFs launched this year.

These achievements came without the spot Ether ETFs offering staking returns or options trading.

Meanwhile, Fidelity’s spot Ethereum ETF recorded the second-largest inflow with $22.5 million, followed by Grayscale Ethereum Mini Trust and Franklin Ethereum ETF with $4.7 million and $1 million, respectively.

“TradFi slurping up that ETH,” commented Anthony Sassano, host of the Ethereum show The Daily Gwei.

However, Grayscale’s higher fee Ethereum product, tickered ETHE, was the only spot Ether ETF to see an outflow, amounting to $39.7 million.

Despite ETHA’s strong performance, spot Ether ETFs have faced a combined outflow of $473.9 million when considering the $2.2 billion that has exited Grayscale’s ETHE.

Ether has since partially recovered, rising 13.5% from its August 5 low of $2,197 to $2,494, according to CoinGecko data.

Bitcoin ETFs See Outflows for Third Day

In contrast, US Bitcoin ETFs experienced significant outflows on August 6, with a net outflow of $149 million, marking the third consecutive day of negative net inflows.

Grayscale’s ETF GBTC recorded an outflow of $32.2 million, Fidelity’s FBTC saw $64.5 million in outflows, and ARKB experienced $28.9 million in outflows.

The total net asset value of Bitcoin spot ETFs now stands at $51.5 billion.

As reported, digital asset investment products saw outflows amounting to $528 million last week, marking the first downturn in four weeks.

The exodus is believed to be a response to mounting concerns over a potential recession in the United States, compounded by geopolitical uncertainties and consequent widespread liquidations across various asset classes.

For one, the Bank of Japan’s (BOJ) decision to raise interest rates for the first time in 17 years due to concerns over the Yen’s purchasing power decline against the US Dollar has triggered apprehension within risk-on asset markets, prompting widespread sell-offs.

Additionally, escalating tensions in the Middle East, particularly between Israel and neighboring nations, have added to the prevailing market unease, with fears of further escalation prompting precautionary measures among concerned countries.