Ethereum ETF Launch Brings $2.2 Billion in Inflows: CoinShares
The launch of a spot-based Ether exchange-traded fund (ETF) has seen one of the largest inflows of the asset since December 2022.
According to the latest CoinShares report, the newly launched Ether (ETH) ETF has seen significant inflows of $2.2 billion, while ETH exchange-traded products (ETPs) have surged by a whopping 542%.
The new inflow milestone was tempered by a net outflow of $285 million from Grayscale’s $1.5 billion incumbent trust, with total outflows from the incumbent fund reaching $1.8 billion.
Related: BlackRock Impersonators Target Crypto ETF Investors
Bitcoin inflows continue
Along with the growth of ETH, Bitcoin (BTC) attracted $3.6 billion in inflows last month, contributing a total of $19 billion year-to-date (YTD), which is an all-time high.
According to CoinShares analysts, the firm believes the surge is due to speculation surrounding the upcoming US elections and the potential for BTC to become a strategic reserve.
Analysts also attributed the rally to investors regaining confidence in BTC as the Federal Reserve is expected to cut interest rates in September.
Related: Grayscale Ethereum Trust ETF net outflows hit $1.5 billion
Market Trends and Statistics
The report found that the digital asset market continues to grow, with total assets under management reaching $99.1 billion.
Total inflows in 2024 reached a record high of $20.5 billion on a YTD basis, as trading volumes across all digital assets hit an all-time high in May on anticipation of an Ether ETF.
The report highlighted that this record was broken last week, with a total of $14.8 billion, largely driven by the launch of an Ether ETF, while digital asset investment products only saw inflows of $245 million last week.
Related: bitFlyer Acquires FTX Japan, Plans to Launch Crypto ETF
Grayscale Fund Outflow Reaches $1.5 Billion
On July 26, outflows from the Grayscale Ethereum Trust ETF (ETHE) surpassed $1.5 billion, with net outflows exceeding $356 million in a single day.
The newly converted Ethereum Trust ETF has seen investors withdraw more than $1.5 billion since the spot Ether ETF launched in the US on July 23.
On the other hand, Grayscale’s Ethereum mini-trust ETH (ETH) performed well, recording a net inflow of $44.9 million on July 26.
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