Ethereum ETFs record third day of positive inflows since debut

Ethereum ETFs saw positive inflows of about $26.7 million on August 1. Since the asset class started trading on Jul 23, it has only received positive flows on two other days, per Farside data.

Grayscale outflows seem to have slowed down, reducing the overall pressure in the ETF market. According to crypto analyst Milk Road on X, Grayscale has lost 20% of its ETH ETF holdings in the sell-off.

Ethereum ETFs see inflows on Day 8

Data by Farside notes that August 1 was the third day of positive investor flows into ETH ETFs. Blackrock’s ETHA has posted positive flows on multiple days, with the highest inflows being $266 million and $118 million on day 1 and day 6 respectively.

Fidelity’s FETH also recorded inflows with the highest levels on the first two days up to $74.5 million. Bitwise’s ETHW saw its highest inflow of $204 million on July 23. Investor fund infusions into other ETFs are smaller in comparison to the top-performing ETFs.

Meanwhile, Grayscale’s ETHE outflows continue to negatively impact the overall market. According to crypto analyst Milk Road on X, the selling pressure might soon reduce as the trend of outflows from Grayscale’s ETF slows down. Over 20% of its holdings have been sold so far.

Ethereum ETF flows are finally positive thanks to @Grayscale outflows slowing down

Over 20% of Grayscale’s ETH ETF holdings have already been sold off

Soon, Grayscale selling pressure will be history pic.twitter.com/xtwxBpQIVJ

— Milk Road (@MilkRoad) July 31, 2024

Grayscale’s ETHE has not had any day of positive inflow. However, due to smaller outflows from its product, the ETH ETF market’s cumulative flows for the day turned positive on July 23, July 30, and August 1. ETHE’s outflows slowed down to $78 million at the start of the month. The daily total net inflow of ETH ETFs touched $26.75 million, however, the cumulative total net inflow is reaching -$500 million.

According to SoSoValue, the total value traded of Ethereum ETFs is now $331 million while the total net assets are close to $8.7 billion. The platform finds that Ethereum ETFs now make up around  2.29% of Ethereum’s total market cap.

Ethereum’s price remains stable above $3000

At the time of writing, Ethereum is trading above the $3,100 mark after recording minor weekly and monthly losses of up to 7%. Ethereum’s year-to-date gains come up to around 38%, with at least 75% of holders sitting on profits. IntoTheBlock data reveal that there have been under $48 billion in large transactions over the last 7 days.

The 30-day exchange flows for ETH stands at -31.41k ETH which can potentially reduce the available supply of ETH available to investor for trading. Therefore, if ETH ETFs see increased demand, the prices could potentially fare better over time.