Ethereum Investment Products See Massive $2.2B Inflows with Launch of Spot Ether ETFs

Over the past week cryptocurrency investment products saw $245 million of inflows, with Bitcoin seeing inflows of $519 million to bring its month-to-date inflows to $3.6 billion, a figure dwarfed by the $2.2 billion in inflows the newly issued spot Ethereum exchange-traded funds saw.

According to CoinShares’ Digital Asset Fund Flows report, the newly launched spot Ether ETFs saw some of the “largest inflows since December 2020,” while trading volumes in ETH exchange-traded products (ETPs) surged 542% with their launch.

The report reads:

This figure is somewhat controversial as Grayscale seeded its new Mini Trust ETF (the week prior) with capital from its incumbent closed-end trust (~US$1bn), which may help explain the steady stream of outflows in recent years.

However, over the past week Ethereum ETPs saw $284.9 million in outflows. Which were partly justified by the seeding of Grayscale’s new Mini Trust ETF with capital from its closed-end trust, the Grayscale Ethereum Trust, which also saw investors cash out.

Notably, exchange-traded products offering exposure to multiple cryptocurrencies saw $8.7 million of inflows in the last week, while those offering exposure to Cardano saw $1.2 million of inflows, above the $500,000 for XRP products and $400,000 for Chainlink products.

Solana-focused exchange-traded products saw a $2.7 million outflow over the past week. The $2.2 billion inflows into Ethereum-focused products come shortly after the launch of spot Ether ETFs in the United States, and at a time in which whale activity has been surging on-chain.

According to data from IntoTheBlock, on-chain data reveals a surge in activity among Ethereum’s largest investors. Whale transactions — those exceeding $100,000 — reached a monthly high on July 24, with a staggering 3.5 million ETH moved in a single day, with the record being broken the next day after 3.68 million ETH ($12.1 billion) were moved in a single day.

While this frenzied activity might suggest accumulation, a closer look at the data paints a more complex picture. While inflows to large wallets increased by 12.42% over the past week, outflows soared by a more substantial 38.17%, resulting in a net outflow of 100.65%. This suggests that whales are, on balance, moving Ethereum off trading platforms.

Featured image via Unsplash.

Source