US Spot Ethereum ETFs See First Week of Positive Net Inflows Since Launch

U.S. spot Ethereum exchange-traded funds (ETFs) have experienced positive net inflows for the first time since their debut on July 23.

According to data from ETF tracker SoSoValue, the nine newly launched spot Ether ETFs in the U.S. recorded a combined net inflow of $104.8 million during the week starting on August 5.

This marks a significant milestone for these ETFs, as they collectively traded a total value of $1.9 billion, bringing their total net assets to $7.3 billion as of August 9.

Ether Price Declines Despite Positive Inflows

The influx of capital came despite a sharp decline in the price of Ether, the underlying asset, which has seen a 23% drop since the beginning of August.

Notably, six out of the nine funds recorded positive net flows during this period.

Leading the charge was BlackRock’s iShares Ethereum Trust (ETHA), which saw the largest inflow with $188.4 million.

Since its launch, the BlackRock fund has accumulated over $900 million in assets and has not yet recorded a single day of outflows.

Fidelity’s Ethereum Fund (FETH) followed as the second-highest performer, drawing in $44.65 million last week, bringing its total assets to $342 million.

GM$ETH spot ETFs saw a $105 million inflow last week.

Let’s see if this momentum continues this week! pic.twitter.com/oIascBGYYf

— Jack 🏔️ (@Jackisnotinabox) August 12, 2024

Other ETFs that recorded positive inflows include Grayscale’s Mini Ethereum Trust (ETH) with $19.8 million, VanEck Ethereum ETF (ETHV) with $16.6 million, Bitwise Ethereum ETF (ETHW) with $11.7 million, and Franklin Ethereum ETF (EZET) with $3.7 million.

However, the 21Shares Core Ethereum ETF (CETH) and Invesco Galaxy Ethereum ETF (QETH) reported no net flows for the week.

The aggregate inflows could have been higher if not for Grayscale’s Ethereum Trust (ETHE), which faced $180 million in outflows, contributing to an overall outflow of $406.4 million across all nine funds.

Meanwhile, ETF issuers are pushing to introduce options products for their spot ETH funds.

Last week, the New York Stock Exchange (NYSE) American proposed a rule change to list and trade options for three Ether ETFs managed by Grayscale and Bitwise.

The move seeks to include options for the Bitwise Ethereum ETF (ETHW), the Grayscale Ethereum Trust (ETHE), and the Grayscale Ethereum Mini (ETH).

ETH Burn Rate Drops to Lowest Level

As reported, the Ethereum network has witnessed a significant drop in its ETH burn rate, reaching the lowest levels recorded this year.

The base fees for transactions, a key factor in determining the burn rate, have recently fluctuated between just 1 and 2 gwei, marking a substantial decline in network activity.

The decrease in gas fees has led to a corresponding reduction in the amount of ETH burned.

On Saturday, only 210 ETH were burned—a record low for the year.

This contrasts sharply with the 5,000 ETH burned on August 5, when gas fees spiked to around 100 gwei.

As a result of the lower burn rate, the network’s inflation has risen, with a net ETH emission of over 2,000 ETH on the same day.