Ethereum ETFs Drive Market Activity as Grayscale Trust Hampers Inflows

The debut of spot Ethereum ETFs in the United States resulted in some of the highest inflows since December 2020 over the last week.

The launch of spot Ethereum ETFs in the United States has led to some of the highest inflows in the past week since December 2020. According to CoinShares, the newly launched funds attracted $2.2 billion last week.

The trading volume of Ethereum ETPs has also surged by 542% since then. However, the inflows were offset by Grayscale's existing $1.5 billion Ethereum trust, which saw ETH experiencing a net outflow of $285 million for the week.

This mirrors the situation observed during the January 2024 ETF launches, which resulted in Bitcoin trust outflows.

Ethereum ETFs Boost Trading Volume

The latest edition of the “Digital Asset Fund Flows Weekly Report” showed that Ethereum ETF launches drove the trading volume of digital asset investment products to $14.8 billion, the highest since May.

Over a broader timeframe, the inflows were more modest, at $245 million.

The recent price increase has pushed the total assets under management (AuM) to $99.1 billion, with year-to-date (YTD) inflows hitting a record $20.5 billion.

Bitcoin also saw strong inflows of $519 million in the past week, bringing its month-to-date inflows to $3.6 billion and YTD inflows to a record $19 billion. CoinShares attributed the renewed investor interest to US electioneering remarks about Bitcoin as a potential strategic reserve asset and the increasing likelihood of a FED rate cut in September 2024.

During the same period, short-Bitcoin investment products saw minimal inflows of $0.3 million. This contrasts sharply with the weekly inflows into Bitcoin, indicating that while some investors are hedging against potential downturns, the overall sentiment remains bullish.

Among altcoins, Cardano, Litecoin, and XRP saw inflows of $1.2 million, $0.6 million, and $0.5 million, respectively. Chainlink also saw inflows of $0.3 million for the week. Notably, Solana recorded outflows of $2.7 million.

Germany Tops Outflows Chart

Regionally, the US saw the highest inflows, totaling $272 million, followed by Switzerland at $40.6 million. Canada and Australia also recorded mild inflows of $2.5 million and $1.7 million respectively.

At the same time, Germany saw the highest outflows with $59.6 million. Brazil, Hong Kong, and Sweden followed suit with $5.6 million, $3.5 million, and $2.6 million in weekly outflows.

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