Spot Ethereum ETFs Surpass $4 Billion Inflows Despite Grayscale Outflows

Spot Ethereum Exchange Traded Funds (ETFs) traded on the US market have surpassed $4 billion in cumulative net inflows as of June 24th, marking a significant milestone eleven months after their launch. This achievement is notable given the rising geopolitical tensions in the Middle East. According to data, the funds attracted $100.7 million in net inflows in just one day, the highest daily influx in a week. Fidelity’s FETH fund led the way with $60.5 million, while BlackRock’s ETHA fund, typically in the lead, brought in $25.8 million. Grayscale’s ETHE and ETH investment products received $9 million and $5.4 million, respectively.

Despite the impressive total net inflow of funds, the $4.3 billion net outflows since the conversion of Grayscale’s higher-fee ETHE fund have impacted this figure. Without these outflows, cumulative net inflows would have stood at $8.3 billion. This highlights the significant impact of the conversion on the overall performance of the ETFs. ETF Store President Nate Geraci mentioned on a social media platform that “Spot Ethereum ETFs have surpassed $4 billion in cumulative inflows since their launch. Including ETHE’s $4.3 billion outflows, it seems quite successful to me.”

As a result of the significant outflows recorded, Grayscale’s ETHE fund’s market share declined from 89.7% at its debut to 30.2%. Part of it shifted to the company’s smaller ETH product. As of Monday, BlackRock’s ETHA fund leads the market with a 31.8% share, while Fidelity’s FETH fund is third with 18%, and Grayscale’s ETH product ranks fourth with 15.5%.

The performance of spot Ethereum ETFs remains modest compared to spot Bitcoin ETFs, which launched in January 2024 and attracted $34.7 billion in cumulative net inflows within the first eleven months. This figure currently stands at $47.3 billion. Bitcoin ETFs drew in $350.8 million in net inflows on June 24th alone, led by BlackRock’s IBIT product, continuing a ten-day positive trend. Considering Ethereum’s market capitalization of $290.3 billion (approximately 13.8% of Bitcoin’s $2.1 trillion market value), the flows into ETFs become more comparable.

In terms of current price performance, Bitcoin was trading at $105,091, rising by 3.2% in the last 24 hours, while Ethereum increased by 6.3% to approximately $2,403 during the same period. This indicates a strong performance for both cryptocurrencies, with Ethereum showing a more significant percentage increase.