Ethereum (ETHUSD)

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HAVE THE ETHEREUM ETFs FAILED? 🏦
BREAKING: Ether ETFs have bled money, but that's not the whole story

ETH
At first glance, it may appear that the Ethereum ETFs have been a failure…

After all, since launch they’ve seen net outflows of $478.2 million.

And with BlackRock’s Bitcoin ETF continually putting up numbers like this…

IBIT
26th August IBIT inflows

It’s hard not to look at the ETH ETFs and think:

What’s going on with them?

ETH
Well according to Nate Geraci, president of the ETF Store, we must look beyond Grayscale’s Ethereum Trust.

And if you do, it paints a very different picture…

If you remove ETHE from the equation, the Ethereum ETFs have experienced net inflows of $2.06 billion.

“The fact that over $2 billion has been purposefully allocated to the other spot ether ETFs is a good sign as it shows that investors want ether exposure… While not the dazzling debut we saw from spot bitcoin ETFs, I think spot ether ETFs have clearly had a successful first month and I expect this to continue.”


Nate Geraci
Geraci believes that the Grayscale outflows muddy the waters, making it difficult to gauge just how much demand there really is.

“We simply don’t know all of the underlying motivations of ETHE sellers, which is why I think it’s important to look beyond that product.”


Nate Geraci
Geraci also pointed out something interesting…

So far BlackRock’s Ethereum ETF has seen just over $1 billion in inflows.

Inflows of this magnitude make it the seventh most successful ETF launch of 2024.

Which is kinda insane when you think about it. (it’s only been trading for just over 1 month)

But, back to the question.

Have the Ethereum ETFs been a failure? 🤔

No. No they haven’t…

After 1 month of trading, the newly launched ETFs have attracted over $2 billion in inflows.

By ETF standards, that is ridiculous and anything but a failure.