Ethereum spot ETF saw $113 million in outflows on the second day of launch

Author: Tom Mitchelhill, CoinTelegraph; Compiler: Baishui, Golden Finance

U.S. exchange-traded funds that invest in spot Ethereum saw net outflows of $113.3 million on the second day of trading, mainly due to large losses in the Grayscale Ethereum Trust.

Seven of the eight "new" Ethereum ETFs saw net inflows on the second day of trading. Fidelity's Ethereum Fund (FETH) and Bitwise Ethereum ETF (BITW) were the two funds with the largest net inflows, with inflows of $74.5 million and $29.6 million, respectively.

BlackRock's iShares Ethereum Trust (ETHA) topped its peers in inflows on July 23, but raised only $17.4 million from investors on July 24.

Ethereum ETFs saw net negative outflows on their second day of trading. Source: Far Side

The new spot fund was dragged down by another day of heavy selling from the recently converted Grayscale Ethereum Trust (ETHE), which saw $326.9 million in outflows.

ETHE was launched by Grayscale in 2017 to allow institutional investors to buy ETH. However, it imposed a six-month lockup period on all investments. Investors were able to sell their ETH more easily after switching to a spot Ethereum fund on July 22.

Within two days of the switch, ETHE saw outflows of $811 million, meaning existing ETHE investors have now dumped a little over 9% of the fund’s holdings.

The recent performance of Ethereum ETFs is not unprecedented.

Spot Bitcoin ETFs have seen cumulative net outflows in six of 10 trading days on their debut, with many blaming the Grayscale Bitcoin ETF’s losses.

ETH is currently trading at $3,172, down more than 6.8% in the past 24 hours and 7.4% for the week, according to TradingView.

The poor performance of Ethereum prices comes amid a broad sell-off in the stock market, with the S&P 500 closing down 2.3% on the day. ETF outflows caused a sharp drop in ETH prices. Source: TradingView

It is worth noting that ETH fell more than Bitcoin, which fell only 2.6%. This is consistent with Kaiko analyst Will Cai's prediction that ETH's price may be extremely "sensitive" to inflows after the launch of the ETF.

Grayscale’s ETHE, a spot Ethereum fund, lost $484.4 million on its first day of trading. However, strong inflows across eight other products pushed cumulative net inflows to $106.6 million.