Fidelity’s Ethereum ETF Sees Largest Daily Outflow Since Launch
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The spot Ethereum ETF market experienced a jolt on October 1st, with Fidelity’s Ethereum Fund (FETH) recording its largest daily outflow since its inception The nascent U.S. spot Ethereum exchange-traded fund (ETF) market experienced a significant jolt on October 1st, with Fidelity’s Ethereum Fund (FETH) recording its largest daily outflow since its inception. The outflow, exceeding $25 million, highlights the challenges facing these investment vehicles despite the initial wave of optimism surrounding their launch. While Grayscale’s Ethereum Trust (ETHE) still holds the overall record for daily outflows, Fidelity’s milestone signals a broader trend of investor hesitancy within the Ether ETF space. On October 1st, the nine U.S.-based spot Ether ETFs experienced a collective outflow of $48.6 million, a stark contrast to the cumulative inflows observed in previous weeks. Table: Ethereum ETF Flow (US$m) – Selected Period Seed data for Grayscale ETHE and ETH includes pre-conversion holdings. Source: Farside Investors FETH, ETHE, and the Bitwise Ethereum ETF (ETHW) led the exodus on October 1st, contributing $25 million, $26.6 million, and $0.9 million in outflows respectively. Bucking the trend were the 21Shares’ Core Ethereum ETF (CETH) and the VanEck Ethereum ETF (ETHV), which registered inflows of $1.2 million and $2.7 million, respectively. Despite the outflows, FETH remains the second-largest Ether ETF in terms of total investments, holding $453.5 million. BlackRock’s iShares Ethereum Trust (ETHA) retains its dominance, boasting over $1.14 billion in assets as of October 1st. However, the persistent outflows from Grayscale’s ETHE, which are approaching the $3 billion mark, have cast a shadow over the market. Consequently, the total investments in U.S. spot Ether ETFs now reflect a deficit of $572 million, as indicated in the table above. This trend of investor caution extends beyond Ethereum to the Bitcoin ETF market as well. On October 1st, spot Bitcoin ETFs…
Filed under: News - @ October 4, 2024 1:17 am