ETH ETFs are not What Industry Expected Them to be: Inflows Remain Weak

• The inflows in spot Ethereum ETFs turned negative, shocking investors.
• The spot ETH ETFs have witnessed outflows worth $13.53 million.
• Grayscale’s ETHE has bled a massive $2.43 billion, turning the net inflows negative.

Ethereum ETFs, approved in the US in May, have experienced negative net inflows, signaling a lukewarm reception from investors.

This underwhelming performance contrasts with the strong debut of Bitcoin ETFs earlier this year. The Grayscale Ethereum Trust (ETHE) has seen significant outflows, contributing to the overall negative trend.

The poor performance of Ethereum ETFs have led to ETH price action being weaker compared to other altcoins. The leading digital asset has also struggled to break above the $3,000 price level. On the other hand, following the approval of spot Bitcoin ETFs, Bitcoin made a new all-time high in March around the $73,000 price region. A similar effect failed to substantiate for ETH.

As per the data from SoSoValue, the total net outflow of US spot Ethereum ETFs stands at $13.52 million. Grayscale’s ETHE has bled a massive $2.43 billion while BlackRock’s iShares Ethereum Trust (ETHA) witnessed a significant $977.62 million in inflows. Fidelity’s FETH has also printed $368.5 million inflows.

However, the combined positive inflows across all ETFs have failed to balance the outflows of Grayscale’s ETHE. A major reason behind the outflow is the unreasonable fee of 2.5% charged by Grayscale. On the other hand, BlackRock and Fidelity charge 0.25% and Bitwise and VanEck charge 0.20%. 

According to the data from CoinMarketCap, ETH is trading at $2,674, up 1.63% in the past 24 hours, after rebounding from the daily low of $2,570. Notably, the digital asset is down a whopping 23% in the past 30 days but is up 60.80% since August 2023. There is a chance that the altcoin might make a move towards $3,000 if the resistance at $2,800 is broken.Industry participants are left wondering whether the lackluster performance of spot ETH ETFs is due to poor launch timing or due to the lower product attractiveness as compared to spot BTC ETFs.