Spot Ethereum ETFs See $5.8M Net Inflow After 9 Days of Outflows

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto…

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Last updated:

August 29, 2024 02:37 EDT

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Ethereum spot exchange-traded funds (ETFs) have seen a net inflow of $5.8 million, marking the first positive movement after nine consecutive days of net outflows.

Among the key players, BlackRock’s ETHA ETF saw the largest inflow, attracting $8.4 million, according to data from SoSoValue.

Fidelity’s FETH ETF followed with an inflow of $1.3 million, contributing to the overall positive net flow.

In contrast, Grayscale’s ETHE ETF experienced an outflow of $3.8 million, reflecting some ongoing selling pressure despite the broader trend.

Ethereum Records Longest Outflow Streak

The recent net outflows had extended to nine days, the longest streak of outflows since the funds started trading last month.

The cumulative effect of these outflows has brought the total net flow of Ethereum ETFs to nearly $500 million within the first five weeks of their launch.

Analysts from JP Morgan had anticipated weaker flows for Ethereum ETFs compared to Bitcoin ETFs, citing the absence of staking and lower liquidity as contributing factors.

They noted that Grayscale’s ETHE outflows had exceeded expectations, leading to discussions among asset managers about potentially launching a combined Bitcoin and Ethereum spot ETF.

Meanwhile, Bitcoin spot ETFs also faced challenges on Wednesday, with a total net outflow of $105 million.

More specifically, Grayscale ETF GBTC saw $7.9796 million in outflows, followed by Grayscale mini ETF BTC at $8.7716 million and ARKB at $59.27 million.

BlackRock’s Ethereum ETF Debuts on Brazilian Stock Exchange

In a related news, BlackRock is expanding its cryptocurrency offerings internationally, with its latest move being the listing of an Ethereum ETF on Brazil’s stock exchange, B3, on August 28.

The ETF, available under the ticker ETHA39, is accessible to both retail and institutional investors in the country.

The Ethereum ETF is offered through a depositary receipt, a type of security that represents shares in a foreign company or fund, typically traded in the local currency and backed by the original asset.

BlackRock’s iShares Ethereum Trust (ETHA) will be priced at one-third of its original value for the Brazilian market, making it more accessible to local investors.

Management fees are set at 0.25% annually, consistent with U.S. rates.

However, these fees will be reduced to 0.12% during the first year or until the fund reaches $2.5 billion in assets under management.

The launch follows BlackRock’s earlier introduction of its iShares Bitcoin Trust in Brazil, also through a depositary receipt.

“[IBIT] is the fastest-growing ETF in history over a three-month period, indicating significant pent-up demand,” Cristiano Castro, BlackRock’s director in Brazil, said.

Brazil has been a pioneer in allowing the trading of crypto-tied products on its stock exchange.

With the introduction of BlackRock’s Ethereum ETF, Brazilian investors now have access to 15 ETFs or depositary receipts linked to digital assets.

Additionally, local regulators have recently approved the world’s first spot Solana-based ETF, which is expected to launch soon.