- Most Ethereum ETFs have seen significant outflows since their launch. BlackRock’s iShares Ethereum Trust ETF has gained over US$1B in net inflows.
- Grayscale’s ETHE fund, converted to an ETF in July 2024, has faced significant outflows, complicating the assessment of true demand for Ethereum ETFs.
- Ethereum’s network activity has decreased, with a 55% drop in trading volume and a decline in daily transactions to multi-month lows in August.
Most Ethereum ETFs are bleeding, except for a few. Since the launch of the nine Ethereum ETFs a month ago, over US$460M (AU$678.6M) in outflows have been witnessed.
Related: Grayscale Increases Suite of Crypto Funds with Launch of Avalanche (AVAX) Trust
It’s not so bad, however.
According to data from Farside Investors, BlackRock’s iShares Ethereum Trust ETF (ETHA) has crossed US$1B (AU$1.47B) in net inflows. It’s been one of the most successful ETFs this year. Meanwhile, Fidelity’s Advantage ETF (FETH) has racked up over US$387M (AU$570.9M), and Bitwise Ethereum ETF (ETHW) takes the third spot with US$312M (AU$460.28M).
But while BlackRock is gaining billions, Grayscale is losing them. That number in red, the 2,542, is the massive amount of billions the company has lost, but it stems from the fact that Grayscale’s ETHE fund has already been working since 2017, but not as an ETF.
It wasn’t until July 2024 that Grayscale converted its trust to a proper spot Ethereum ETF. The massive fees compared to the rest of the nine funds are probably the main reason investors are pulling their money and choosing other options instead. The main problem with Grayscale’s fund overall is that it clutters the picture regarding how much demand there is for Ethereum ETFs in reality.
Come On, Ethereum, Do Something
Meanwhile, data from The Block shows the Ethereum network has experienced a notable decline in trading volume and daily transactions throughout August. The seven-day moving average of daily trading volume on Ethereum has dropped by approximately 55% over the past month.
The economic throughput on the blockchain, measured in US dollar terms, decreased from $6.56B (AU$9.67B) on July 26 to US$2.9B (AU$4.27B) today.
Ethereum’s total trading volume in July was US$134.71B (AU$198.75B), whereas August’s trading volume reached US$91.46B (AU$134.92B), with five days remaining in the month.
Further, daily transactions on the Ethereum network have also seen a downturn. The seven-day moving average for daily transactions reached a multi-month low, with approximately 1.07 million transactions recorded on Sunday. This is a decrease from the peak of 1.32 million daily transactions observed on March 25 earlier this year.
Related: Swissblock Analysts See Bullish Sentiment After Fed-Chair Rate Cut Hints
August has also seen a decline in monthly transactions, hitting a low not seen since May 2020. So far, there have been a worrying 27.27M transactions on the Ethereum blockchain this month (again, the month is not over), compared to 35.49M transactions in July.
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