The Ethereum spot ETF market experienced a $133 million net outflow on its second trading day, primarily driven by massive withdrawals from Grayscale's Ethereum Trust (ETHE). Concurrently, BTC briefly dipped below $64k, while ETH plummeted over 5% within 24 hours.
Eight of Nine ETH ETFs Saw Inflows, But Grayscale Dominated Outflows
Data from Farside Investors reveals that eight out of nine Ethereum spot ETFs recorded positive net inflows. However, Grayscale's ETHE single-handedly reversed this trend with a $326 million withdrawal, resulting in an overall market net outflow of $133.3 million.
Key performers included:
- Fidelity (FETH): $74.5M inflow
- Grayscale Mini ETH ETF: $45.9M inflow
- Bitwise (ETHW): $29.6M inflow
BlackRock’s ETHA, the first-day leader, attracted only $17.4M but remains the largest issuer by assets under management ($284M).
Grayscale’s ETHE: $811M Outflow in Two Days
Investors liquidated 9%+ of ETHE holdings, mirroring GBTC’s post-Bitcoin ETF launch sell-off. Analysts note similar early-stage volatility in Bitcoin ETFs, where Grayscale’s GBTC saw $2B+ outflows.
Market Impact: ETH Tumbles 8% Amid Sell-Off Fears
ETH dropped to $3,100 (-8%) as ETHE outflows spooked traders. Meanwhile:
- BTC: -2.9% at ~$64k
- S&P 500: -2%
- Nasdaq: -3.64%
👉 Why institutional sell-offs trigger crypto market downturns
FAQ
Q: Will Ethereum ETFs recover from early outflows?
A: Historical Bitcoin ETF trends suggest initial volatility may stabilize as institutional participation grows.
Q: How does Grayscale’s ETHE differ from its Mini ETH ETF?
A: ETHE is a pre-existing trust converting to an ETF, while the Mini ETF is a new, lower-fee product targeting fresh capital.
Q: What’s driving ETH’s price drop post-ETF launch?
A: “Sell-the-news” reactions and broader market risk-off sentiment amplified by Grayscale’s outflows.
Risk Disclosure: Cryptocurrency investments carry high volatility and risk of capital loss. Assess your risk tolerance carefully.