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Ethereum ETFs attract $33.6 million in new capital
Ethereum exchange-traded funds (ETFs) posted a net inflow of $33.6 million on Tuesday, marking a turnaround in performance after four straight days of losses for funds tracking the world’s second-largest cryptocurrency by market capitalization.
The funds are open to investment by everyone from retail investors to pension funds, making the nine ETFs an attractive option for investors looking for greater exposure to cryptocurrencies without having to buy digital assets directly.
The nine funds recorded a total trading volume of $563.22 million on Tuesday, down slightly from Monday’s volume of $773.01 million and Friday’s volume of $933.86 million.
Part of the funds’ difficulty in capturing investor interest is timing. They debut during the traditionally quiet summer months, when investors typically engage in lower trading activity.
Even so, Ethereum ETFs generated about $1.1 billion in transactions on their first day on Tuesday. That figure represents nearly a quarter of Bitcoin’s $4.6 billion in trading volume on Jan. 11.
Meanwhile, the Grayscale Ethereum Trust continues to see steady outflows — a trend that has accelerated since its launch on July 23. Its most recent net outflows totaled $120.28 million, and the ETF is the only fund that has recently seen negative flows, data of SoSoValue revealed.
BlackRock’s Ethereum ETF recently attracted $117.98 million in net inflows, while Fidelity’s fund saw $16.36 million and the Grayscale Ethereum Mini Trust saw a meager $12.36 million.
ETFs regularly close due to competition from cheaper competitors, and often, a single winner emerges at the top of the pack. In the Bitcoin ETF space, BlackRock has already surpassed all other ETF issuers and risen to the top, replacing others like Grayscale, although the latter has been around longer in the Bitcoin space.