The launch of spot Ether exchange-traded funds (ETFs) in the United States has generated substantial interest, marking one of the largest inflows into the asset since December 2022. According to CoinShares’ latest report, newly issued spot Ether ETFs have attracted a remarkable $2.2 billion in inflows. This influx has coincided with a 542% increase in ETH exchange-traded products (ETPs).
Offset by Grayscale’s Net Outflows
Despite the significant inflows, Grayscale’s Ethereum Trust has experienced notable outflows. The Ethereum Trust witnessed $285 million in net outflows against its $1.5 billion holdings. These outflows tempered the overall enthusiasm surrounding the new ETF launches.
Bitcoin’s Record Inflows
In parallel, Bitcoin has seen substantial investment activity. Over the past month, Bitcoin attracted $3.6 billion in inflows, contributing to a year-to-date (YTD) total of $19 billion. This figure marks a historic high for the cryptocurrency.
CoinShares analysts attribute the surge in Bitcoin investments to speculation surrounding the upcoming US elections and the potential for Bitcoin to be recognized as a strategic reserve asset. Additionally, investor confidence appears to be bolstered by the anticipation of a Federal Reserve rate cut in September.
Growing Digital Asset Market
The digital asset market continues to expand, with total assets under management (AUM) reaching $99.1 billion. For 2024, total inflows have hit a record-breaking $20.5 billion YTD. Trading volumes across all digital assets peaked in May, driven by the anticipation of Ether ETFs.
The week of July 22 saw this record surpassed, with total inflows reaching $14.8 billion, largely fueled by the launch of the Ether ETFs. However, digital asset investment products saw relatively modest inflows of $245 million.
Grayscale’s Significant Outflows
On July 26, Grayscale’s Ethereum Trust ETF faced substantial outflows, amounting to over $1.5 billion, with net outflows reaching $356 million in a single day. The newly converted Ethereum Trust ETF has seen investors withdraw significant funds since the launch of the spot Ether ETFs in the US on July 23.
In contrast, Grayscale’s Ethereum Mini Trust performed well, recording a net inflow of $44.9 million on July 26, highlighting a divergence in investor behavior between different Ethereum-related investment products.
The launch of spot Ether ETFs in the United States has led to substantial inflows, showcasing significant interest and investment in the asset. However, this enthusiasm has been somewhat tempered by substantial outflows from Grayscale’s Ethereum Trust. Meanwhile, Bitcoin continues to attract significant investment, driven by market speculation and favorable economic expectations. As the digital asset market evolves, these trends underscore the dynamic and rapidly changing landscape of cryptocurrency investments.
