On October 1, outflows from the Fidelity Ethereum Fund (FETH) reached over $25 million. This figure marked the highest daily outflows among all US spot Ethereum ETFs, excluding Grayscale Ethereum Trust (ETHE).
This comes as Ethereum slips into a bearish trend alongside Bitcoin and the broader crypto market. Ethereum has fallen off the $2,600 threshold and currently trades around $2,441, with over 2.6% decline in the past 24 hours.
Ethereum ETFs Face Pressure: A Look at Outflows and Resilient Inflows
The nine Ether spot ETFs recorded total outflows of $48.6 million, with FETH accounting for $25 million.
Ethereum ETF Flow (US$ million) – 2024-10-01
TOTAL NET FLOW: -48.6
ETHA: 0
FETH: -25
ETHW: -0.9
CETH: 1.2
ETHV: 2.7
QETH: 0
EZET: 0
ETHE: -26.6
ETH: 0For all the data & disclaimers visit:https://t.co/FppgUwAthD
— Farside Investors (@FarsideUK) October 2, 2024
Grayscale’s ETHE had $26.6 million, and the Bitwise Ethereum ETF (ETHW) contributed $0.9 million. These significant outflows reflect the bearish trend in the broader crypto market.
Only two Ethereum ETFs saw positive inflows on the same day. The first was the 21Shares’Core Ethereum ETf (CETH), which gained $1.2 million. The second was the VanEck Ethereum ETF (ETHV), which brought in $2.7 million. The other Ethereum ETFs reported no changes in their investment amounts.
Grayscale still holds the record for daily outflows with its Ethereum Trust (ETHE), meaning it has seen the most single-day outflows compared to other funds.
However, Fidelity’s recent milestone highlights the increasing pressure on the ETH ETF market. Despite the outflows, Fidelity’s Ethereum Fund (FETH) is doing well overall. It has the second-highest total investments, totaling $453.5 million.
BlackRock’s iShares Ethereum Trust (ETHA) is the leader in total investments. As of October 1, it has surpassed $1.14 billion.
Over the past three months, many ETF issuers have reported steady inflows. However, Grayscale’s outflows have been significant and are nearing the $3 billion mark. This large amount of money being withdrawn indicates a lack of confidence or interest among investors.
Due to these substantial outflows from Grayscale, the total investments in spot Ether ETFs across the United States now have a $572 million deficit.
The Impact of Market Conditions on Bitcoin Investments
The spot Bitcoin ETF market experienced a trend similar to Ethereum ETFs. On October 1, it recorded significant outflows totaling $242.6 million. This amount represents the largest outflow seen in nearly a month, with the last event occurring on September 3.
The Fidelity Wise Origin Bitcoin Fund (FBTC) had the highest outflow among the various Bitcoin ETFs. It saw an outflow of $144.7 million. Following closely behind, the ARK 21Shares Bitcoin ETF (ARKB) experienced an outflow of $84.3 million.
These outflows from both FBTC and ARKB suggest investors might be reacting to recent market conditions, regulatory news, or overall sentiment towards cryptocurrencies.
On October 1, spot prices for Bitcoin fell by nearly $4,000. This drop was in response to geopolitical tensions following Iran’s missile attack on Israel. Such events create uncertainty in global markets, leading investors to react by selling off riskier assets like cryptocurrencies.
However, despite this initial plunge, Bitcoin demonstrated resilience. At the time of publication, its price had rebounded to $61,750.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
