Ethereum ETFs continued to see strong outflows during the trading session on July 26th (U.S. time), with a value of $162.7 million.
According to data from Farside Investors and SpotOnChain, the Ethereum spot ETFs, newly approved for trading by the SEC earlier this week, ended the trading day on July 26th (U.S. time) with a record outflow of -$162.7 million.
The outflows mainly came from Grayscale’s ETHE fund, with $356.3 million, while inflows from other funds were not enough to help Ethereum ETFs close their first trading week in the green. The total outflow for the week reached -$341.8 million.
Similar to Bitcoin ETFs in their early trading days, the reason for the high outflows from Ethereum ETFs is that investors are switching from the pre-existing ETHE product, which has an annual management fee of 2.5%, to newer funds with lower fees.
According to observers, with the current rate of capital withdrawal, it will take another 3-4 weeks for the selling pressure from ETHE to stabilize.
The price of ETH last week fell to as low as $3,087 and has only recovered half of what was lost, unlike Bitcoin, which has returned to its previous price range.
Meanwhile, Bitcoin ETFs had another successful trading week with a total inflow of +$535.3 million, thanks to an inflow of +$51.8 million on July 26th. However, this figure has halved compared to the more than $1 billion inflows of the previous two weeks.
BTC last week also broke its streak of 12 consecutive days of inflows, contributing to Bitcoin’s price correction to $63,400 on the morning of July 25th due to news about Kraken and Bitstamp returning BTC to Mt. Gox investors.
However, at the time of writing, BTC had strongly rebounded to above $68,200, thanks to investor optimism ahead of former U.S. President Donald Trump’s speech at the Bitcoin 2024 Conference this Saturday.