Ethereum Funds Bleed Cash, Marking Record Outflows in the US

Ethereum exchange-traded funds (ETFs) in United States have experienced their longest streak of outflows. From August 15 to August 21, the funds lost $92.2 million over five consecutive days. This marks the most significant outflow period since the ETFs were launched on July 23.

Ethereum ETFs Face $158.6 Million in Outflows

In particular, the Grayscale Ethereum Trust (ETHE) is a major player in these outflows, as it saw a withdrawal of $158.6 million in the five days in question. Grayscale’s fund had redemptions daily except for the 12th of August, which showed that investors remained concerned.

Other ETFs, such as BlackRock’s iShares Ethereum Trust ETF (ETHA) and the Fidelity Ethereum Fund (FETH), also saw some inflows. Still, the amount was not enough to counter the outflows.

Despite the big outflows, Grayscale Ethereum Trust has not made any outflows since its inception. It had a positive cash flow of $231.9 million during the period, which is a way of adjusting to the general situation. However, the total effect of outflows is that all the Ethereum ETFs have a net negative value of $458.5 million.

Bitcoin ETFs Secure $17.5B Despite GBTC Outflows

That said, while Ethereum ETFs limp along, Bitcoin ETFs in the US are remarkably stable. Starting their operations in January 2024, Bitcoin ETFs have attracted $17.5 billion worth of net investment inflow. This is despite the Grayscale Bitcoin Trust (GBTC) seeing outflows of $19.6 billion.

On August 20, the ETFs attracted $88 million in capital, the most in two weeks. IBIT, BlackRock’s iShares Bitcoin Trust, added $55.4 million in fresh investments, which took the total investments since January to $20.5 billion.

Ethereum ETFs Struggle as Bitcoin Maintains Stability

The performance of Ethereum and Bitcoin ETFs shows that investors’ attitudes and global trends are different. Although there has been a decline in inflows in the last few weeks, the interest of big names such as BlackRock and Fidelity in Ethereum ETFs suggests a long-term focus.

However, short-term consequences arising from the volatility of the market and uncertainty of the regulatory environment have caused many withdrawals.

On the other hand, investors inflow into Bitcoin ETFs points to the original cryptocurrency as the preferred choice during volatile periods. As Ethereum ETFs continue struggling through these challenges, the market will be keen to see whether they can regain investor trust and return to the upward trend.

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