With the much-anticipated launch of Ether ETFs in the US, these funds recently recorded their first positive weekly flows, an important milestone for the institutional adoption of Ether. This article explores the implications of this trend and what it could mean for the future of the world’s second-largest cryptocurrency.
Positive flows for the first time since launch
According to data from analysis provider SoSoValue, the nine newly launched Ether ETFs recorded net inflows of $104.76 million between August 5 and 9, 2024. This is the first time since their launch that these funds have experienced a week of positive inflows, an encouraging trend for the institutional adoption of Ether. Among the main contributors to these inflows was BlackRock’s iShares Ethereum Trust ETF (ETHA), which alone captured $118 million.
The Fidelity Ethereum ETF (FETH) also attracted $16.4 million, followed by Franklin Templeton’s EZET and Bitwise’s ETHW with $3.7 and $3.5 million respectively. This positive momentum contrasts with the substantial outflows recorded by the Grayscale Ethereum Trust (ETHE) in recent months. These have plummeted from $356.3 million to $120.3 million in just two trading days, underlining a notable shift in investor confidence in Ether ETFs.
A key step towards institutional adoption of Ether
The shift to positive weekly flows for Ether ETFs marks a crucial step in the institutional adoption of this cryptocurrency. While the market has long been dominated by retail investors, these funds pave the way for increased participation by institutional investors. By offering regulated exposure to Ether in a familiar vehicle such as an ETF, these funds enable a new class of investors to enter the market. This could stimulate demand and support Ether prices in the long term.
