After the success of the spot Bitcoin ETF, spot Ethereum ETF is coming forward with bigger goals. With the ETH ETF approval earlier in May, and the trading going live in July, one specific exchange-traded fund provider has outranked the rest, creating a milestone of the highest net flows. ETHA Ethereum ETF, launched by Blackrock, has become the first one among all nine to cross the $1 Billion mark in net flows.
When Bitcoin ETF is bagging $200 Million in inflows in a week, ETH ones are also catching up with the same. For instance, spot BTC ETFs had $40 Million in net flows yesterday, whereas ETH was at the $18M mark.
US #ETF 21 AUG: $40M to $BTC and $18M to $ETH
BTC ETF UPDATE (final): +$40M
• The net flow has remained positive for the past 5 trading days.
• However, yesterday’s flow volume was generally weak.
ETH ETF UPDATE (final): -$18M
• The net flow has been negative… pic.twitter.com/KLTWX4ypd6
— Spot On Chain (@spotonchain) August 22, 2024
ETHA Ethereum ETF Hits $1 Billion Milestone Within 21 Days
As per Farside Investors, data, Blackock’s iShares Ethereum Trust ETF (ETHA) has officially crossed the $1 Billion mark in net inflows. More importantly, the ETHA Ethereum ETF has achieved this in just 21 days, making the milestone even more significant.
However, Blackrock Bitcoin ETF only took five days to reach the same $1 Billion mark, winning the race here. Moreover, Blockrock’s IBIT is also winning among all the 11 BTC ETFs with the highest inflows. As per last day’s stats, it had more than $20 Billion in net flows. As a result, it confirms the analyst’s forecast of Blackrock Bitcoin ETF Overtaking Satoshi in the maximum Bitcoin holders race.
Blackrock ETH ETF has exhibited steady growth since its launch, as no single days, with net outflows seen since its launch. This gets more interesting with the fact that Ethereum had quite a downfall this month, but the ETF witnessed continued growth. As of now, the Ethereum price is at $2,625.79 after a 25% downfall in a month.
On digging deep, Blackrock ETH ETF saw the biggest inflows of $266.5M on the launch day, followed by $118M on June 30 and $109.9M on July 6. The most recent stats of July 21 have been a little disappointing as it has 0 in net flows, bringing the total to 1,004.2 on Wednesday.
What is The Status of Other Ethereum ETFs?
Despite their early start, all the other exchange-traded funds have failed compared to ETHA Ethereum ETF. Overall, the Spot ETH ETF category has experienced $458 million in outflows, but the Grayscale is here to blame.
Grayscale’s Ethereum Trust has the highest outflows, or we can say that it is the only ETH ETF in outflows with $2.5 billion in negative netflow. This negative flow is due to its transition from a closed-end fund. Moreover, its high management fees of 2.5% have pushed it down in popularity.
Meanwhile, ETHA and Fidelity moved up with a 0.25% expense ratio. With this, Fidelity had bagged $375.4M in inflow, the second highest in this category. Other ETFs, like Franklin, offer even lower fees at 0.19%, making $36.3 Million in net flows.
Final Thoughts
Blackrock is maintaining its dominace in the exchange-traded funds, both in the case of Bitcoin and Ethereum. Just yesterday, one more milestone was added, with ETHA Ethereum ETF bagging $1 Billion in net flows, becoming the first ever ETH ETF to do so. Fidelity Funds is next in line with $375.4 Million, almost one-third of ETHA. More importantly, Grayscale has faced quite a decline, with $2.5 Billion in outflows, bringing the overall Ethereum ETF collection down.
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