Ether ETFs Record $340 Million Outflow in First Week

Spot ether (ETH) exchange-traded funds recorded negative net flows as large outflows from Grayscale Ethereum Trust (ETHE) overwhelmed interest in rival products.

Bitcoin (BTC) funds launched in January saw net inflows of $1 billion in the first four days, despite the massive outflows in the Grayscale fund.

According to Farside Investors, spot ETH ETFs suffered net outflows of $340 million, with more than $1.5 billion exiting the Grayscale Trust.

Ether’s 5% drop over the past week appears to reflect the lackluster sentiment in ETFs.

Apart from Grayscale’s ETHE, other newly listed ether ETF products witnessed inflows of $1.15 billion, led by BlackRock, Bitwise, and Fidelity.

The current pace of outflows from ETHE means the fund will run out of assets within the next four weeks.

Quinn Thompson, founder of digital asset hedge fund Lekker Capital, noted that bitcoin reached a local bottom in late January during the post-ETF sell-off, with ETHE losing the same amount of assets as GBTC. After falling 15% to below $39,000 in two weeks, BTC subsequently rose to new all-time highs.

” style=”height: 770px;”>

Steno Research’s senior crypto analyst Mads Eberhardt noted that GBTC outflows have decreased significantly after the eleventh trading session and suggested that ETHE could follow the same path.

“Ethereum ETF net outflows have not yet abated, but are likely to do so this week,” Eberhard said, adding, “We only foresee upward movement after that anyway.”