Ethereum ETF Outflows Reach Record High, Grayscale Trust Leads with $80 Million Withdrawn

Overview

Massive Outflows from Ethereum ETFs

On Monday, over $79 million was pulled out from nine US spot Ethereum ETFs, marking the largest single-day outflow since July 29, as per data from Farside Investors. Notably, the Grayscale Ethereum Trust (ETHE) saw significant redemptions, with investors withdrawing over $80 million from the fund.

Key Insights

Grayscale Ethereum Trust Takes a Hit

The ETHE fund, since its conversion into an ETF, has witnessed net outflows surpassing $2.8 billion. Despite the continued redemptions, it remains the world’s largest Ether fund, managing around $4.6 billion in assets.

Bitwise Ethereum ETF Stands Out

While most Ethereum ETFs faced outflows, the Bitwise Ethereum ETF (ETHW) experienced inflows, with investors acquiring over $1 million worth of shares. ETHW’s net buying has exceeded $320 million as of September 23, with holdings of over 97,700 Ether.

Market Dynamics

US-Listed Ethereum ETFs vs. Bitcoin ETFs

The demand for US-listed Ethereum ETFs has been lackluster since their introduction on July 23. In contrast, Bitcoin ETFs have seen three consecutive days of gains, with significant inflows reported in offerings from Fidelity, BlackRock, and Grayscale, offsetting the outflows from Ethereum Trust.

Future Outlook

As the cryptocurrency market continues to evolve, the dynamics of ETF investments remain fluid. While Ethereum ETFs face challenges, Bitcoin ETFs are witnessing renewed investor interest, indicating a nuanced investment landscape in the digital asset space.