News View Non-AMP

Spot Ethereum ETFs Face Early Challenges, $341M Outflows Despite Strong Debut

Published by
Mustafa Mulla

On July 23, spot Ethereum ETFs officially began trading, just months after receiving approval from the SEC. The debut was promising, with nine new ETFs attracting over $106 million in net flows. However, the initial excitement is giving way to some early hurdles. 

Let’s delve into the initial impact of these ETFs and what might be next for Ethereum in this evolving market.

It’s Been a Promising Start!

The launch of spot Ethereum (ETH) ETFs on Wall Street created a significant buzz, with $108 million flowing into these funds. Yet, this figure constitutes only 16% of the $655 million that poured into Bitcoin (BTC) ETFs during a similar timeframe. When excluding outflows from Grayscale’s ETHE and GBTC conversions, Ethereum’s share of ETF inflows leaps to 79%.

Despite the strong start, Ethereum ETFs have encountered some obstacles. After an initial surge, these ETFs have seen three consecutive days of net outflows, totaling $341.8 million. This trend, while disappointing, was somewhat anticipated based on historical patterns observed with Bitcoin ETFs, which also experienced early outflows before stabilizing.

Comparing the Challenges: Bitcoin vs Ethereum

The early difficulties with Ethereum ETFs mirror the initial experiences of Bitcoin ETFs, which faced a similar pattern of initial outflows followed by recovery. However, the scale of outflows from Ethereum ETFs is notably larger than those seen with Bitcoin’s GBTC at its launch. This discrepancy is attributed to ETHE trading at net asset value during conversions, unlike GBTC, which was still trading at a discount when its spot ETFs were introduced.

Despite a strong start, demand for other Ethereum products, such as BlackRock’s ETHA and Fidelity’s FETH, has diminished. These ETFs struggled to offset the significant withdrawals from ETHE. Consequently, the data from the first four days of trading reveals a net outflow of $341.8 million from the spot Ethereum ETFs.

ETH Price Analysis

Following the launch, Ethereum’s price exhibited some volatility but has since stabilized between $3,200 and $3,300. This price action mirrors Bitcoin’s experience with its ETF launch. Historically, Bitcoin saw a price recovery after an initial period of fluctuation—a phenomenon known as the “ETF effect.

Despite a 3.15% correction over the past week, Ethereum has rebounded with a 4.84% increase in the last day. Currently trading at $3,366, Ethereum has reached a 24-hour high of $3,384.53 and boasts a trading volume of $11.076 billion. If the positive market sentiment persists, Ethereum could build on this momentum, break through its resistance level at $3,700, and potentially aim for $4,000.

As the dust settles, the true impact of Ethereum ETFs on the market will become clearer.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Best Cryptocurrencies for June 2025: Ripple (XRP), Dogecoin (DOGE), Mutuum Finance (MUTM)

As market sentiment shifts and fresh momentum builds across digital assets, June 2025 presents a…

June 2, 2025

Live Coin Watch Alert: Bitcoin Solaris’s 21M Fixed Supply Creates Your Second Chance at Bitcoin’s Growth Path

When Bitcoin first emerged, its fixed 21 million supply was mocked. Today, that scarcity has…

June 2, 2025

Singapore Cracks Down on Unlicensed Crypto Firms with Strict New Rules

Singapore’s financial authority announces that unlicensed crypto firms operating overseas after June 30 will be…

June 2, 2025

Can U.S. Buy More Bitcoin? Here’s What David Sacks Revealed

On May 27, 2025, US President’s crypto czar, David Sacks, says there is a pathway…

June 2, 2025

After Monero Surge, Wall Street Ponke Gains Momentum, maybe Under $1?

Hackers used Monero to move stolen Bitcoin, pushing XMR up 24 percent to $269. But…

June 2, 2025

Pakistan Allocates 2,000MW for Bitcoin Mining and AI: A Digital Revolution

Pakistan has allocated 2,000 megawatts (MW) of electricity to fuel Bitcoin mining and artificial intelligence…

June 2, 2025