- On the third day of trading, US-based spot Ethereum exchange-traded funds (ETFs) saw a mixed flow of investors, primarily because of large withdrawals from Grayscale’s Ethereum Trust.
According to SoSoValue data, on day three, the cumulative outflows from seven of the eight recently established spot Ether ETFs totaled $152m.
The two best-performing ETFs, iShares Ethereum Trust ETF from BlackRock and Ethereum Mini Trust from Grayscale, brought in $70.93 million and $28.09 million, respectively.
The Bitwise Ethereum ETF (ETHW) and the Fidelity Ethereum Fund (FETH) came in second and third, respectively, with net inflows of $34.32 million and $16.34 million.
Grayscale Exits Weigh on New ETFs for Ethereum
The freshly restructured Grayscale Ethereum Trust continued to exert strong selling pressure, which presented challenges for the recently created ETFs. Just the third day saw $346.2 million in withdrawals from this trust, bringing the total amount since conversion to nearly $1.15 billion.
As a result, almost 10% of the Grayscale Ethereum Trust’s assets have been sold by current investors.
Trading Volume of Ethereum ETFs Differs from Grayscale Outflows
The combined trading volume of Ethereum ETFs on their first trading day exceeded $1 billion.
The newly announced Ethereum ETFs had significant inflows, however the Grayscale Ethereum Trust experienced redemptions of $485 million. JPMorgan estimates that this withdrawal was probably caused by investors choosing less expensive options or using the ETF conversion to benefit from higher liquidity in comparison to the prior trust structure.
At $3,247, Ethereum saw its final trade of the day, up 1.8%.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
