Grayscale Ether ETF Sees $356M Outflows Despite ETH Price Uptick

• Ether ETFs bled on their fourth trading day.
• Grayscale’s ETHE led the day’s outflows with hundreds of millions.
• Ethereum maintained a bullish outlook despite the funds’ performance.

The Grayscale Ethereum Trust ETF (ETHE) continued to bleed on Friday, despite Ether reversing an early-day losing streak to reclaim its bullish traction around the $3,250 price level.

The world’s second-largest crypto by market capitalization fell to $3,000 on July 25 following a massive outflow of $152.3 million from spot Ether exchange-traded funds (ETFs).

While four of the newly launched funds bounced back strongly on July 26 with a combined inflow of $194.2 million, Grayscale’s ETHE overshadowed the gains as investors pulled hundreds of millions from the fund.

Ether ETF Flow on July 26

According to preliminary data by Farside Investors, U.S.-Listed spot Ether ETFs logged a total net outflow of $162.7 million on Friday. The day proved to be particularly volatile for ETHE, which lost $356.3 million, about ten million more than its $346.2 million outflow on the previous day.

Grayscale’s ETHE has witnessed over $1.5 billion in outflows within four days of trading. This trend highlights possible challenges plaguing the fund. For instance, ETHE charges a 2.5% fee, higher than the average 0.25% fee in other funds. This could potentially make the fund less attractive than alternative options.

In contrast to ETHE’s performance, the Grayscale Mini Trust ETF (ETH) saw the day’s second-largest inflow, totaling $44.9 million. BlackRock’s ETHA accounted for the lion’s share of Friday’s inflows with $87.2 million, as Fidelity’s FETH pulled $39.3 million.

Franklin Templeton’s EZET attracted $6.2 million from investors, while VanEck’s ETHW, Invesco’s QETH, and 21Shares’ CETH posted zero flows.

While the overall flow turned negative, the performance of these funds does not seem to have affected Ethereum’s price. At last check, the crypto asset had seen an intraday jump of 0.59% to exchange hands at $3,276 .

Stay updated on how Ether ETFs performed on their first day of trading:
Here’s How Ether ETFs Performed on Their First Day of Trading

Read about asset manager Franklin Templeton’s expansion into Japan:
Franklin Templeton and SBI Team Up for Joint Crypto Business in Japan