The debut of spot-based Ether exchange-traded funds (ETFs) in the United States has generated a substantial $2.2 billion in inflows, according to a recent CoinShares report. This significant milestone marks one of the largest inflows to Ethereum since December 2022, despite being offset by $285 million in net outflows from Grayscale’s $1.5 billion Ethereum trust.
Major Inflows for Ether ETFs
The CoinShares report highlights that the newly issued spot Ether ETFs have experienced a remarkable 542% increase in inflows, bringing a total of $2.2 billion into the asset. This surge represents a major achievement for Ethereum, reflecting growing investor interest and confidence in the cryptocurrency.
Bitcoin Inflows Continue
In addition to the developments with Ethereum, Bitcoin has also seen substantial inflows. Over the past month, Bitcoin has attracted $3.6 billion in inflows, contributing to a year-to-date (YTD) total of $19 billion, setting a historic high. CoinShares analysts attribute this surge to speculation surrounding the upcoming US elections and the potential for Bitcoin to become a strategic reserve asset. Renewed investor confidence in Bitcoin, driven by expectations of a Federal Reserve rate cut in September, has also played a role.
Market Trends and Statistics
The digital asset market continues to expand, with total assets under management reaching $99.1 billion. Total inflows for 2024 have reached a record-breaking $20.5 billion YTD, with trading volumes across all digital assets hitting an all-time high in May, largely in anticipation of the Ether ETFs. The report notes that the record was broken during the week of July 22, totaling $14.8 billion, driven primarily by the launch of the Ether ETFs, despite overall digital asset investment products seeing only $245 million in inflows.
Grayscale Outflows Hit $1.5 Billion
On July 26, Grayscale’s Ethereum Trust ETF outflows exceeded $1.5 billion, with net outflows topping $356 million in a single day. Since the launch of the spot Ether ETFs in the US on July 23, investors have withdrawn over $1.5 billion from the newly converted Ethereum Trust ETF. However, Grayscale’s Ethereum Mini Trust ETH performed well, recording a net inflow of $44.9 million on July 26.
These developments underscore the dynamic and evolving landscape of digital asset investments, with significant inflows into new products and notable outflows from established ones. As the market continues to grow, investor interest and confidence in cryptocurrencies like Ethereum and Bitcoin remain strong.
