After an unexpected approval by the U.S. Securities and Exchange Commission (SEC), spot Ethereum ETFs went live. However, they have not been well received, with large net outflows in their first week of trade.
On Friday, July 26, spot Ethereum ETFs saw withdrawals for the third day in a row. According to statistics from SoSoValue, these exchange-traded funds saw a net outflow of about $341 million in their first week after going live on July 23.
The ETFs got off to a good start, with a net inflow of about $106.8 million on their first day. This was seen as a “solid start” by market experts, especially when compared to the launch of Bitcoin ETFs earlier that same day.
Ethereum Sees Major Outflows
But quickly, things went the other way. On July 24, over $133 million left the account on Wednesday, followed by $152 million on Thursday and $162 million on Friday.
The losses were mostly caused by Grayscale’s ETHE ETH Trust ETF, which saw over $356 million leave the market in one day on Friday. In spite of this, the Grayscale offering has brought in a total of $1.51 billion since it started.
It’s also been hard for Ethereum’s price, which has dropped more than 7% in the last week. New information from CoinGecko shows that Ethereum is now worth about $3,248, which is 1.1% less than it was yesterday.
CryptoQuant’s report shows that new sources of capital, like ETFs, have less of an effect on ETH than on Bitcoin. Bitcoin’s market capitalization grows by $5 for every dollar invested, but only $1.33 for ETH. This is shown by the “realized capitalization multiplier” measure. So far in 2024, this means that Ethereum has a lower multiplier effect.
