Ether ETFs end first trading week with $340M net loss

Ether ETFs end first trading week with $340M net loss
Dollar inflows into eight newly minted ETFs weren't enough to cancel out an exodus from a high-fee legacy crypto product.
JUL 29, 2024
By  Bloomberg

The nine US ETFs holding the Ethereum cryptocurrency saw outflows of $340 million during their first week of trading as investors pulled money daily from a high-fee legacy product that was converted to an exchange-traded fund.

The eight new Ether exchange-traded funds minted following last week’s approval from the US Securities and Exchange Commission took in $1.17 billion in the four trading days ended July 26, according to data compiled by Bloomberg. 

The biggest inflows were seen by funds from BlackRock, Bitwise and Fidelity, which took in $442 million, $266 million and $219 million, respectively. Grayscale’s incumbent Ethereum Trust lost $1.5 billion.

Investors saw the convergence of Grayscale’s fund as an opportunity to cash out, according to a Monday report from CoinShares Ltd. This is similar to when investors pulled billions of dollars from the Bitcoin Grayscale Trust when spot ETFs for Bitcoin were launched in January.

In addition to Grayscale converting its existing fund, the firm also launched a “Ethereum Mini Trust” which has a current fee of 0%, compared to the trust’s 2.5%. The mini trust brought in $91 million last week. 

The price of Ether has dropped 4.6% to around $3,331 since the ETFs began trading on July 23. The second-biggest cryptocurrency after Bitcoin is up about 46% so far this year.   

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.