Ether (ETH) Exchange-Traded Funds (ETFs) Record $440.1 Million in Net Outflows in Opening Week

In the opening week of Ether (ETH) exchange-traded funds (ETFs), the market recorded a total of $440.1 million in net outflows.

CoinChapter – YEREVAN, Armenia. Ether (ETH) exchange-traded funds (ETFs) recorded a total of $440.1 million in net outflows during their opening week in the market. A substantial $1.7235 billion exited the Grayscale Ethereum Trust (ETHE), overshadowing the inflows into newly listed products.

This massive outflow from ETHE highlighted the challenges in capturing investor interest, especially in the context of Ether ETFs.

Earlier in January, Bitcoin (BTC) ETFs attracted $1 billion in net inflows within four days, even with outflows from the Grayscale Bitcoin Trust (GBTC). This disparity showcases the contrasting market responses between Bitcoin and Ether ETFs during their initial periods.

Despite the overall outflow, new Ether ETF products attracted $1.15 billion in inflows. This indicates a strong interest in obtaining Ether exposure through ETFs, even as the market adjusts to these new options.

Among the new Ether ETFs, BlackRock, Bitwise, and Fidelity led the offerings. Notably, the outflows from ETHE were largely countered by these inflows.

As a result of these developments, Ether’s price dropped by 5% last week. Meanwhile, Bitcoin’s price rose by 2%, further highlighting the varying dynamics affecting each asset.

Quinn Thompson, founder of digital asset hedge fund Lekker Capital, highlighted the similarity in outflows between ETHE and Grayscale Bitcoin Trust (GBTC) during late January, around the time when BTC hit a local bottom.

In a Monday commentary on the outflows, as reported by Blockworks, Thompson stated that, “ETHE has already shed the same amount of assets as GBTC did during the post-ETF sell-off.”

According to Mads Eberhardt, senior crypto analyst at Steno Research, outflows from GBTC typically subside by the eleventh trading session.

In a Monday X post, Eberhardt noted that, “The Ethereum ETF net outflow is yet to subside, but it is likely that it will happen this week.”

At the time of writing, Ethereum (ETH) is trading at $3,341.48, down by 0.91% in the past 24 hours. Its market capitalization is around $401.74 billion, making it the second-largest cryptocurrency by market cap.

In the past 24 hours, ETH price ranged from a low of $3,332.08 to a high of $3,371.05, with a total trading volume of $17.10 billion, up by 47.13%. The volume-to-market cap ratio is 4.25%.

There are 120,228,315 ETH in circulation, out of a total supply, and maximum supply of 120,228,315 coins.