The cumulative outflows from Grayscale Ethereum Trust (ETHE) are now over $2 billion after it recorded substantial outflows in recent days. Despite the substantial outflows, net inflows into the spot Ethereum (ETH) market flipped positive on the same day.
Grayscale See $78 Million in Outflows
According to data from FarSide Investors, Grayscale’s Ethereum Trust saw outflows of $78 million on August 1, up by 22%. Grayscale’s management fee of 2.5% could be a key factor contributing to the outflows.
Notably, ETHE was a trust that offered institutional investors exposure to Ethereum unlike the other eight Ethereum ETFs launched as “newborn” funds on July 23. ETHE held $9 billion in Ethereum on its books before its conversion.
Mads Eberhardt, a senior analyst at Steno Research previously said the massive outflows from Grayscale’s ETHE may subside by the end of the week. If this happens, the analyst believes Ethereum will continue with an uptrend. Meanwhile, Will Cai, Kaiko’s head of indexes claims impacts on price is expected to come from “potential” outflows from Grayscale’s ETHE.
$2.7M Flow into Ethereum ETF Market
While Grayscale’s ETHE recorded substantial outflows, the US spot Ethereum ETFs saw $2.7 million in new money on Wednesday. BlackRock’s iShares Ethereum ETF (ETHA) topped the chart, recording $89.6 million in inflows. Fidelity’s FETH came behind with $11.7 million, while Bitwise’s ETHW was next with $3.4 million.
The inflows from Bitwise ETHW is, however, a far-cry from the over $200 million inflows recorded in a single day. The trading volume also decreased by 0.8% to $18.8 billion with the market cap standing at $378 billion.
Surprisingly, ETH has been trading sideways for the past seven days. The cryptocurrency is currently trading at $3,141, representing a 1.4% decline in the past day, and an 8.5% drop since the ETF launched.
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