Ether ETFs Post Largest Single-Day Outflows Since Late July Amid Waning Institutional Appeal For Second-Biggest Crypto
United States spot Ether exchange-traded funds (ETFs) have posted their largest daily outflows since late July, with more than $79 million being withdrawn on Monday in a sign of faltering institutional demand for the industrys second-biggest crypto.
Conversely, spot Bitcoin ETFs saw positive inflows during the same period.
Ether ETFs Bleed While Bitcoin ETFs Cash In
Is Ethereum (ETH) losing steam with mainstream investors and institutions? Data on how much money flows into and out of the newly-launched nine spot Ether exchange-traded funds (ETFs) seems to show just that.
The ETH ETFs bled $79.21 million on Monday, marking their largest single-day outflow since July 29, according to Farside Investors data.
The Grayscale Ethereum Trust (ETHE) led the losses, with investors withdrawing $80.55 million from the fund. Since its conversion to a spot ETF, ETHE has faced massive outflows of roughly $2.8 billion in Ether, amounting to 32% of its initial $9 billion ETH holdings. Mondays outflows broke a brief two-day inflow streak for these products.
Bitwises ETHW was the only gainer, with investors purchasing $1.3 million worth of shares in the fund. Other ETFs reported zero flows.
The lackluster demand for spot ETH ETFs has continued since they first went live on U.S. exchanges on July 23. BlackRocks iShares Ethereum Trust (ETHA) currently leads the pack in terms of total inflows and was the first to hit $1 billion in net capital. Fidelitys Ethereum Fund (FETH) comes in second spot, followed by Bitwises ETHW.
The outflows on Monday came despite a wider crypto market rally spurred by the recent Federal Reserve rate cut, which helped propel the ether price by over 15% in the last seven days. Nonetheless, the dissociation between ETHs price movement and ETF outflows signals that traditional investors remain skeptical about the assets growth potential in the long term.
While Ethereum ETFs suffered, their spot Bitcoin counterparts saw net inflows of $4.56 million on Monday, marking their third straight day of gains.
Data shows that Fidelitys FBTC showed robust performance with a single-day net inflow of $24.93 million. BlackRocks IBIT, the biggest spot BTC fund by net assets, drew in $11.6 million in investor money, while Grayscales GBTC recorded inflows of $8.4 million.
Text source: ZyCrypto
