Outflows from the Grayscale Ethereum Trust ETF (ETHE) have surged past $1.5 billion, with a significant $356 million withdrawn on a single day, July 26. If the current outflow rate continues, ETHE’s Ether reserves could be depleted within weeks.
Volatility in the Market
Data from SoSo Value indicates that July 26 was particularly volatile for spot Ether exchange-traded funds (ETFs), with total net outflows reaching $163 million. Grayscale’s newly converted Ethereum Trust ETF has experienced substantial net outflows since spot Ether ETFs launched in the United States on July 23.
Grayscale’s Mixed Fortunes
Contrary to the trend seen with ETHE, Grayscale’s Ethereum Mini Trust ETF (ETH) recorded a net inflow of $44.9 million on July 26. Since its launch, the Ethereum Mini Trust ETF has accumulated total net inflows of $164 million.
Meanwhile, BlackRock’s iShares Ethereum Trust ETF (ETHA) has garnered the most investor interest, with a net inflow of $87.2 million on July 26, bringing its total net inflows to $442 million.
Market Context
The total net asset value of spot Ether ETFs stands at $9.2 billion. The ETF net asset ratio, which represents ETFs’ market value relative to Ethereum’s total market value, is at 2.36%. Despite these figures, the historical cumulative net outflow for spot Ether ETFs has reached $341 million.
On July 23, eight investment firms introduced nine new Ethereum exchange-traded funds tracking the cryptocurrency’s spot price, following approval from the US Securities and Exchange Commission in May.
