Ethereum ETFs Gain Momentum Despite Grayscale's $2B Withdrawal Crisis

Ethereum ETFs in the US have turned positive in net inflows despite Grayscale Ethereum Trust facing over $2 billion in outflows, recent reports indicate.

US Ether ETFs Report Positive Inflows

Even though the Grayscale Ethereum Trust (ETHE) has had cumulative withdrawals of more than $2 billion, daily net inflows into spot Ether ETFs in the US have turned positive again.

According to Farside Investors data, the Ether ETFs had a net inflow of $26.7 million on August 1st. The largest single contributor was BlackRock's iShares Ethereum Trust (ETHA), which received $89.6 million.

Massive Withdrawals Hit Grayscale Ethereum Trust

With a $78 million withdrawal on August 1st, the total amount of money pulled out of Grayscale's Ethereum Trust since it became a spot ETF is a little over $2 billion.

Institutional investors were given exposure to Ether through ETHE, a trust, in contrast to the other eight spot Ether ETFs that were launched as "newborn" funds on July 23.

The amount of Ether held by ETHE before its conversion was $9 billion. Expenditures have exceeded 22% of the initial investment as of August 1st.

Market Analysts Predict Positive Outlook for Ethereum

Senior analyst Mads Eberhardt of Steno Research has predicted that the enormous withdrawals from Grayscale's ETHE will "likely" start to slow down by the weekend, and he has also stated that a slowdown in withdrawals would be a bullish catalyst for the price of Ethereum.

“When it does, it’s up only from there,” as Eberhardt stated in a post on X on July 30.

Will Cai, head of indexes at Kaiko, had previously stated on July 23 that ETH pricing would be "sensitive" to inflows into spot products.

As a result of this vulnerability, according to TradingView data, ETH has declined 8.5% since the ETFs started and is currently trading at $3,168.

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