Ethereum spot exchange-traded funds (ETFs) have marked a significant turnaround, witnessing a net inflow of $5.8 million, ending a streak of nine consecutive days of net outflows. This change comes as investors show renewed interest in Ethereum amidst fluctuating market conditions.
Key Players and Recent Inflows
Among the major contributors to this revival, BlackRock’s ETHA ETF leads with an inflow of $8.4 million, as detailed by data from SoSoValue. Following closely, Fidelity’s FETH ETF recorded a modest inflow of $1.3 million, helping to boost the overall net flow positively. In contrast, Grayscale’s ETHE ETF experienced an outflow of $3.8 million, indicating ongoing selling pressure relative to the other ETFs.
Longest Outflow Streak Recorded
The recent outflow period extended to a record nine days, marking the longest consecutive decline since these funds began trading last month. Despite this downturn, the total net flow for Ethereum ETFs over the initial five weeks has approached $500 million. Analysts from JP Morgan had predicted weaker performance for Ethereum ETFs in comparison to Bitcoin ETFs, attributing this to factors such as the lack of staking mechanisms and lower liquidity within the Ethereum market.
Market Performance of Bitcoin ETFs
On a similar note, Bitcoin spot ETFs faced challenges as well, with a total net outflow of $105 million on a single day. Grayscale’s GBTC recorded an outflow of $7.9796 million, with other funds like Grayscale mini ETF BTC and ARKB seeing withdrawals of $8.7716 million and $59.27 million, respectively.
BlackRock’s International Expansion
In a significant development, BlackRock is broadening its cryptocurrency offerings by launching an Ethereum ETF on Brazil’s stock exchange, B3, as of August 28. This ETF trades under the ticker ETHA39 and is available to both retail and institutional investors in Brazil. The fund is structured as a depositary receipt, allowing it to be denominated in local currency while being backed by the underlying asset.
Accessibility and Management Fees
BlackRock’s iShares Ethereum Trust (ETHA) will be offered at one-third of its original price in the Brazilian market, enhancing accessibility for local investors. Additionally, management fees are set at 0.25% annually but will be reduced to 0.12% in the first year or until the fund reaches $2.5 billion in assets under management. This follows BlackRock’s earlier success with its iShares Bitcoin Trust in Brazil, which has been recognized as the fastest-growing ETF in history over a three-month period.
Brazil’s Leading Role in Crypto ETFs
Brazil continues to lead in the trading of crypto-related products on its stock exchange. With the launch of BlackRock’s Ethereum ETF, the country now boasts a total of 15 ETFs or depositary receipts linked to digital assets. Furthermore, local regulators have approved the world’s first spot Solana-based ETF, which is anticipated to launch soon, signaling continued growth and interest in cryptocurrency investments in Brazil.