Grayscale Ethereum Trust ETF hits historic net outflow of $1.5B

In a striking development in the cryptocurrency market, the Grayscale Ethereum Trust ETF (ETHE) has reached a historic net outflow of $1.514 billion. This milestone is underscored by a significant net outflow of $356 million in a single day on July 26, contributing to the overall figure.

According to data from SoSoValue, July 26 proved to be a particularly volatile day for Ethereum spot ETFs. On this day alone, the total net outflow of Ethereum spot ETFs amounted to $163 million, reflecting a broader trend of investor withdrawal from these financial instruments.

Grayscale's newly launched spot Ethereum ETF, a conversion of ETHE, has been marked by significant net outflows, with investors withdrawing a substantial $1.5 billion in the first few days of trading. This substantial withdrawal has underscored the challenges currently facing the ETF.

Grayscale’s mixed fortunes

While the Grayscale Ethereum Trust ETF ETHE experienced massive outflows, the Grayscale Ethereum Mini Trust ETF (ETH) saw a contrasting trend. On July 26, the Mini Trust ETF recorded a net inflow of $44.9426 million.

This brings the current total net inflow for the Grayscale Ethereum Mini Trust ETF to $164 million, indicating investor confidence in this smaller-scale trust.

However, the largest net inflow for an Ethereum spot ETF on July 26 was observed in the BlackRock ETF ETHA, which saw a single-day net inflow of $87.2178 million. This surge has pushed the total net inflow for ETHA to an impressive $442 million.

This inflow not only highlights BlackRock’s strong market presence but also indicates significant investor interest in their Ethereum spot ETF offering. In terms of net inflow rankings, the second position on July 26 was held by Grayscale ETF ETH, matching the inflow figure of $44.9426 million seen in the Mini Trust ETF.

Market context

The total net asset value of Ethereum spot ETFs currently stands at $9.238 billion. The ETF net asset ratio, which represents the market value of ETFs relative to the total market value of Ethereum, is at 2.36%. Despite these figures, the historical cumulative net outflow for Ethereum spot ETFs has reached $341 million, indicating a significant shift in investor behavior over time.

On July 23, eight investment firms introduced nine new Ethereum exchange-traded funds that track the cryptocurrency's spot price, following their initial greenlight from the Securities and Exchange Commission in May.