Ethereum ETFs Experience Positive Inflows After Prolonged Outflows
Ethereum spot exchange-traded funds (ETFs) have recently experienced a net inflow of $5.8 million, breaking a streak of nine consecutive days of net outflows.
Among the notable ETFs, BlackRock’s ETHA ETF led with the largest inflow, attracting $8.4 million, according to data from SoSoValue. Fidelity’s FETH ETF also contributed to the positive movement, with an inflow of $1.3 million.
However, Grayscale’s ETHE ETF faced an outflow of $3.8 million, indicating that selling pressure persists despite the overall positive trend. The total net inflow for Ethereum spot ETFs on August 28 was $5.8447 million, marking the first positive net inflow after a series of nine days of net outflows.
The recent series of net outflows, extending over nine days, represents the longest period of outflows since these funds began trading last month. These outflows have accumulated to nearly $500 million in net flows for Ethereum ETFs within the first five weeks of their launch.
Analysts from JP Morgan had predicted weaker performance for Ethereum ETFs in comparison to Bitcoin ETFs, pointing to the absence of staking and lower liquidity as key factors. It was noted by these analysts that the outflows from Grayscale’s ETHE exceeded expectations, prompting discussions among asset managers about the possibility of launching a combined Bitcoin and Ethereum spot ETF.
Bitcoin ETFs Also Face Outflows
On Wednesday, Bitcoin spot ETFs were not immune to outflows, recording a total net outflow of $105 million. Specifically, Grayscale’s GBTC ETF experienced $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 Expands Internationally
In related news, BlackRock has continued to broaden its cryptocurrency offerings by listing an Ethereum ETF on Brazil’s stock exchange, B3, on August 28. This ETF, trading under the ticker ETHA39, is available to both retail and institutional investors in Brazil.
The Ethereum ETF is structured as a depositary receipt, representing shares in a foreign company or fund and traded in the local currency. BlackRock’s iShares Ethereum Trust (ETHA) will be priced at one-third of its original value for the Brazilian market, enhancing accessibility for local investors.
The management fees are set at 0.25% annually, aligning with U.S. rates, but will be reduced to 0.12% for the first year or until the fund reaches $2.5 billion in assets under management. This launch follows BlackRock’s earlier introduction of its iShares Bitcoin Trust in Brazil, also through a depositary receipt.
Brazil’s Pioneering Role in Crypto-Tied Products
Cristiano Castro, BlackRock’s director in Brazil, noted the rapid growth of the iShares Bitcoin Trust, stating, “[IBIT] is the fastest-growing ETF in history over a three-month period, indicating significant pent-up demand.” Brazil remains at the forefront of enabling the trading of crypto-tied products on its stock exchange, with BlackRock’s Ethereum ETF providing Brazilian investors access to 15 ETFs or depositary receipts linked to digital assets.
Additionally, local regulators have approved the world’s first spot Solana-based ETF, which is expected to be launched soon.
