- Ethereum ETFs have had mixed performance since their launch.
- The ETFs are showing signs of a positive turnaround.
- Ethereum has faced price headwinds in recent weeks.
The newly launched U.S. Ethereum ETFs have fallen short of expectations since their debut, struggling to sustain upward momentum in fund flows. Initially driven by Grayscaleโs ETHE, this underperformance has recently affected other issuers, reducing inflows and increasing outflows.
However, following the rather trying period, the US-based investment vehicles may be headed for recovery.
Ethereum ETFs Record Light Inflows
In a reversal of fortune on August 1, 2024, ETH ETFs recorded a total net inflow of $26.75 million. According to SoSoValue data, BlackRock’s ETF ETHA led the charge with $89.65 million in investments, followed by Fidelityโs ETF FETH with a more modest inflow of $11.69 million.
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However, the $100.34 million inflows across both issuers were offset by Grayscaleโs ETF ETHE, which saw a total outflow of $77.95 million, bringing the net total inflow for the exchange-traded funds to $26.75 million.
Grayscaleโs ETHE outflows build on its week-long trend of underperformance, which saw the issuer lose $133 million the day before and over $1.3 billion since its launch.
The recent inflows suggest a potential recovery for Ethereum ETFs, particularly following five days of underperformance with only brief improvements. However, the negative trend among the ETFs is impacting Ethereum.
Ethereum Price Struggles
Trading at $3,003 at press time, Ethereum (ETH) has experienced an approximate 4% decline in the past 24 hours. This puts the assetโs total loss in the past week at 7.7%, marking a significant slip from its peak price of $3,838.
While the asset managed to climb some gains between its rocky performance, it quickly retreated, failing to break the resistance it faced at the $3,500 level. This drop pushed ETH below the $3,100 support level, marking its lowest price point in the past seven days.
Ethereumโs price is 25% below the peak price of $4,000 attained earlier in the year, and it remains to be seen whether the signs of recovery witnessed in the ETFs will soon extend to the asset.
On the Flipside
- Despite the broader underperformance, BlackRockโs ETF ETHA has taken the crown in positive inflows.
- With a total net asset value of $8.72 billion, US Ethereum ETFs account for 2.41% of ETFs market cap.
Why This Matters
The recent outflows have overshadowed the positive trading days for Ethereum ETFs, making any signs of recovery stand out in the hopes of reversing the trend of underperformance.
Read this article to find out more about the underperformance of Grayscaleโs ETHE:
Ethereum ETF Market Roiled by Grayscale’s $1.16B Outflow
Discover how the U.S-based tech firm MicroStrategy is gobbling up Bitcoins:
MicroStrategy’s BTC Stash Hits 226,500, But Theyโre Not Done Buying
