Spot ethereum ETFs recorded net outflows of $113.3 million yesterday on their second trading day, primarily due to significant outflows from Grayscale’s Ethereum Trust.
Seven out of eight newly launched ethereum ETFs achieved net inflows on the second trading day. The Fidelity Ethereum Fund (FETH) and Bitwise Ethereum ETF (BITW) led with the largest net inflows, achieving $74.5 million and $29.6 million, respectively.
BlackRock’s iShares Ethereum Trust (ETHA), which had the strongest inflows from the group on July 23, raised only $17.4 million from investors on July 24.
The new ETFs were burdened by another tough day of selling from the recently converted Grayscale Ethereum Trust (ETHE), which caused outflows of $326.9 million.
Launched by Grayscale in 2017, ETHE allowed institutional investors to purchase ethereum. However, it imposed a six-month lock-up period for all investments. After converting to an ETF on July 22, investors can now more easily sell their ethereum.
In the two days following the conversion, ETHE witnessed outflows of $811 million, meaning existing investors have now sold off just over 9 percent of their shares in the fund.
Spot bitcoin ETFs had cumulative net outflows in six of their first ten trading days, with many blaming outflows from the Grayscale Bitcoin Trust ETF.
Ethereum is now trading at $3,161, a drop of over 8.5 percent in the last 24 hours.
The decline in the price of ethereum and bitcoin followed a broader sell-off in the stock market, with the S&P 500 falling 2.3 percent on July 24.
