Net inflows into Ethereum (ETH) ETFs since launch have topped $1 billion, according to Coinshares.
The company indicates that $1.014 billion has been invested in these funds. At the same time, Grayscale Ethereum Trust, traded on OTC Markets, has seen a decline of $820 million as investors move into the new vehicles.
Coinshares explains:
“After two days of trading since the product launch, we have seen inflows of USD $801 million, excluding the seed capital that moved from Grayscale’s old ETHE product to its new mini trust ETH ETF. This is a very positive start. However, we have observed significant outflows from the original Grayscale closed-end fund, totaling USD $820 million. These outflows, where the discount to NAV has locked clients in for many years, result in net outflows of US$19 million.”
Coinshares says movement in the Grayscale funds should not be viewed negatively.
“This situation is very similar to the Bitcoin ETF product launches at the beginning of the year. It likely represents a mix of clients taking profits for the first time in many years and switching to cheaper products.
We expect the inflows from the newly issued ETFs to gradually surpass the outflows from the closed-end Grayscale fund. It is worth noting that the launch of these ETFs comes during the summer doldrums when many investors are on holiday and trading activity is lower. In that context, the launch has been surprisingly successful.”
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