Grayscale’s ETHE ETF Stops Bleeding After $2.3 Billion in Ether Outflows Since Launch

Ethereum


TLDR

Grayscale Ethereum Trust (ETHE) posted its first day of zero outflows since conversion to spot ETF
Ethereum and layer-2 networks saw increased activity recently
ETH ETFs saw $5.0 million inflow, while Bitcoin ETFs had $27.8 million inflow on August 12
Overall, Ethereum ETFs have $401.4 million in total outflows since launch
Digital asset investment products saw $176 million in inflows amid market correction

The Grayscale Ethereum Trust (ETHE) has posted its first day of zero outflows since its conversion to a spot exchange-traded fund (ETF). This development comes as Ethereum and its layer-2 networks experience a surge in activity.

ETHE, which has seen nearly $2.3 billion in Ether outflows since its launch on July 23, 2024, finally halted its consecutive streak of daily outflows on August 12. This represents more than 25% of its total holdings, which stood at $9 billion before the conversion.

On the same day, United States-based spot Ether ETF flows turned positive for the fifth time since their launch. Data from Farside shows that Ethereum ETFs saw a slight inflow of $5.0 million. However, the total outflows from Ethereum ETFs since inception remain at $401.4 million.

bybit

In comparison, Bitcoin ETFs saw larger inflows on August 12, totaling $27.8 million. ARK’s ARKB led with a $35.4 million inflow, bringing its total inflows to $2.5 billion. BlackRock’s IBIT followed with a $13.4 million inflow. Some funds did see outflows, with Bitwise’s BITB and Grayscale’s GBTC experiencing $17.1 million and $11.8 million in outflows, respectively.

The stabilization of ETHE outflows coincides with increased activity on the Ethereum network and its layer-2 solutions. Trading volumes on Ethereum-based decentralized exchanges (DEXs) rose by 12% in a 24-hour period, while Solana-based DEXs saw a 10% decline in the same timeframe.

Layer-2 networks on Ethereum have also seen heightened activity. Uniswap, an Ethereum-based DEX, reported a record 8.65 million new addresses created across layer-2 networks in July, nearly double the 4.93 million added in June. Base and Arbitrum, two prominent layer-2 networks, boasted 2.64 million and 1.37 million weekly active users, respectively.

The total value locked (TVL) across all Ethereum layer-2 networks now stands at $37.7 billion, while Ethereum’s mainnet has $85 billion in TVL. On August 12, Ethereum layer-2 networks collectively processed 298 transactions per second, approaching the all-time high of 322 TPS reached on July 18.

In the broader context of digital asset investment products, a recent report indicates inflows of approximately $176 million as investors took advantage of the previous week’s market correction. The total Assets under Management (AuM) of investment products initially dropped to $75 billion during the correction but has since recovered to $85 billion.

Country-specific data shows varied investor sentiment. The United States saw the largest inflow of $89 million, followed by Switzerland with $20 million, Brazil with $19.9 million, and Canada with $12.6 million. However, the US also experienced the highest net outflows at around $306 million.

Grayscale, a significant institutional investor, now holds about 2.25 million ETH in total, including approximately 360,000 ETH in its newly launched Grayscale Ethereum Mini Trust (ETH).

This represents a 25% reduction in Ethereum holdings for Grayscale.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

You have not selected any currency to display

Pin It on Pinterest

Ico-Investor
Coinmama
Ico-Investor
Ethereum
bybit
Fiverr
trading desk
SEC, CFTC Division To End Fragmented US Crypto Landscape
SharpLink Gaming Bought $295M ETH That Exceeds The Net Issuance In The Past 30 Days.
Bitcoin Miner Phoenix Group launches $150M Crypto Treasury: BTC, SOL
Whales Increase Holdings by 12% Despite Market Downturn
BTC trades stably near $105.5K; institutional ETF inflows reached $2.2B last week
Cex
Changelly
Galaxy Digital adds 4,272 Bitcoin in Q2, reduces ETH, XRP exposure
trading desk
Trump Blames Biden for Banks Blocking Crypto: 'There Is a Lot of Debanking'
Hester Peirce Defends Crypto Privacy Amid Tornado Cash Trial
rally
Galaxy Digital adds 4,272 Bitcoin in Q2, reduces ETH, XRP exposure
trading desk
Trump Blames Biden for Banks Blocking Crypto: 'There Is a Lot of Debanking'
Hester Peirce Defends Crypto Privacy Amid Tornado Cash Trial