Ethereum
Ethereum ETFs Disappoint Community With Massive Outflows
Alex Dovbnia
Ethereum ETFs Suffered Massive Net Outflows on Second Day of Trading
Read U.TODAY on
Google News
Ethereum Exchange Traded Funds (ETFs) connected more than $133 million in outflows on their second day of trading, according to data provided by Farside Investors.
Fidelity’s FETH leads the way with $74.5 million in inflows. Grayscale’s mini ETF comes in second with $45.9 million.
BlackRock’s ETHA saw modest inflows of $17.4 million.
However, these inflows were not enough to offset the gargantuan outflows recorded by Grayscale’s ETHE, which lost $326 million on Wednesday.
The outflows are expected due to ETHE’s huge 2.5% fee.
As reported by U.Today, Ethereum ETFs debuted with “Very solid” entries. However, it seems that these products are struggling to maintain their momentum.
Ethereum price has dropped by up to 7.3% in the past 24 hours due to the massive sell-off.
Cryptocurrency suffered a double whammy: disappointing investment flows into ETFs and the recent U.S. stock market crash. The tech-heavy Nasdaq-100 index fell 3.6%. Tesla shares fell more than 12% after its earnings missed Wall Street estimates.
Bitcoin Dominance Grows
Meanwhile, Bitcoin dominance jumped to 56%, the highest level in over a month, despite the hype surrounding the launch of Ether ETFs.
The ETH/BTC pair is down 6% in just two days and is likely to continue to underperform if net outflows persist.
For comparison, Bitcoin ETFs, which launched in early January, saw $44.5 million in net inflows on Wednesday. BlackRock’s blockbuster IBIT led the way with $60 million in inflows. Grayscale’s GBTC saw $26.2 million in outflows.
Bitcoin ETFs saw $200 million in inflows on their second day of trading despite selling pressure from Grayscale’s GBTC.
About the Author
Alex Dovbnia
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.