Ethereum ETF launch drives $2.2B inflows: CoinShares

The launch of spot-based Ether exchange-traded funds (ETFs) has marked one of the largest inflows to the asset since December 2022.

According to the latest CoinShares report, newly issued Ether (ETH) ETFs racked up a significant $2.2 billion in inflows alongside a 542% hike in ETH exchange-traded products (ETPs).

The new inflows milestone was tempered by $285 million in overall net outflows from incumbent funds from Grayscale’s $1.5 billion incumbent trust.

Bitcoin inflows persevering

Alongside ETH developments, Bitcoin (BTC) has attracted $3.6 billion in inflows over the past month, contributing to a year-to-date (YTD) total of $19 billion — a historical high.

According to CoinShares analysts, the firm believes the surge is driven by speculation surrounding the upcoming United States elections and the potential for BTC to become a strategic reserve.

The analysts also attribute this to renewing investor confidence in BTC, given the expectations of a Federal Reserve rate cut in September.

Market trends and statistics

The report reveals that the digital asset market continues to grow, with total assets under management reaching $99.1 billion.

Total inflows for 2024 have reached a record-breaking $20.5 billion YTD as trading volumes across all digital assets rose to an all-time high in May in anticipation of Ether ETFs.

The report highlights that this record was broken last week, totaling $14.8 billion, largely fueled by the launch of the Ether ETFs, despite digital asset investment products seeing only $245 million in inflows last week.

Grayscale outflows hit $1.5 billion

On July 26, Grayscale Ethereum Trust ETF (ETHE) outflows reached over $1.5 billion, with net outflows topping $356 million in a single day.

The newly converted Ethereum Trust ETF witnessed investors withdraw over $1.5 billion since the spot Ether ETFs launched in the US on July 23.

Contrastingly, Grayscale’s Ethereum Mini Trust ETH (ETH) performed well, recording a net inflow of $44.9 million on July 26.