Ethereum ETFs saw $5.8 million in net inflows after 9 days of outflows
Date: 2024-08-29 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Ethereum spot funds (ETFs) saw net inflows of $5.8 million, marking the first positive move after nine days of continuous outflows.
Among the major players, BlackRock ETHA saw the largest inflows at $8.4 million, according to SoSoValue data.
Fidelity’s FETH followed closely behind with $1.3 million in inflows, also contributing to the overall positive net flow.
In contrast, Grayscale ETHE saw outflows of $3.8 million, reflecting continued selling pressure despite the overall uptrend.
Ethereum Records Longest Outflow Streak
The recent outflow streak lasted nine days, marking the longest outflow streak since the funds began trading last month.
The combined effect of these outflows has brought the total net inflows into the Ethereum funds to nearly $500 million in the first five weeks since their launch.
JP Morgan analysts had predicted weaker flows for Ethereum funds compared to Bitcoin funds, citing the lack of staking and low liquidity as key factors.
They also noted that outflows from Grayscale’s ETHE fund have exceeded expectations, prompting discussions among asset managers about the possibility of launching a combined Bitcoin and Ethereum spot ETF.
Meanwhile, Bitcoin spot ETFs also struggled on Wednesday, recording a total net outflow of $105 million.
Specifically, Grayscale’s GBTC ETF saw outflows of $7.9796 million, while Grayscale’s mini Bitcoin ETF saw outflows of $8.7716 million, with ARKB seeing outflows of $59.27 million.
BlackRock’s Ethereum ETF debuts on Brazil exchange
In related news, BlackRock is expanding its cryptocurrency offerings internationally, having recently launched an Ethereum ETF on Brazil’s B3 stock exchange on August 28.
The ETF, available under the ticker ETHA39, is available to both retail and institutional investors in the country.
This Ethereum ETF is offered through depositary receipts, a type of security that represents shares of a foreign company or fund, typically traded in a local currency and backed by the underlying asset.
BlackRock’s iShares Ethereum Trust (ETHA) will be offered at a third of its initial price in the Brazilian market, making it more accessible to local investors.
Management fees are set at 0.25% per year, in line with U.S. rates.
However, during the first year, or until the fund reaches $2.5 billion in assets under management, these fees will be reduced to 0.12%.
The launch follows BlackRock’s previous introduction of the iShares Bitcoin Trust in Brazil, also via depository receipts.
“IBIT has become the fastest-growing ETF in history over a three-month period, indicating significant pent-up demand,” said Cristiano Castro, director of BlackRock in Brazil.
Brazil has become a pioneer in allowing cryptocurrency-related products to be traded on its stock exchange.
With the launch of BlackRock's Ethereum ETF, Brazilian investors now have access to 15 ETFs, or depository receipts, linked to digital assets.
In addition, local regulators recently approved the world's first Solana-based spot ETF, which is expected to launch soon.
