U.S. spot Ethereum exchange-traded funds (ETFs) have achieved positive net inflows for the first time since their debut on July 23. According to ETF tracker SoSoValue, the nine newly launched spot Ether ETFs collectively saw a net inflow of $104.8 million during the week starting August 5.
This milestone comes amid a significant downturn in Ether’s price, which has dropped by 23% since the beginning of August. Despite this, the ETFs managed to trade a total value of $1.9 billion, boosting their total net assets to $7.3 billion as of August 9.
Major Contributors to Positive Net Flows
Among the funds, BlackRock’s iShares Ethereum Trust (ETHA) led with the largest inflow, attracting $188.4 million. Since its launch, ETHA has accumulated over $900 million in assets without recording any outflows.
Fidelity’s Ethereum Fund (FETH) was the second-best performer, drawing $44.65 million last week, increasing its total assets to $342 million.
Other ETFs with positive inflows include:
- Grayscale’s Mini Ethereum Trust (ETH): $19.8 million
- VanEck Ethereum ETF (ETHV): $16.6 million
- Bitwise Ethereum ETF (ETHW): $11.7 million
- Franklin Ethereum ETF (EZET): $3.7 million
Conversely, the 21Shares Core Ethereum ETF (CETH) and Invesco Galaxy Ethereum ETF (QETH) reported no net inflows for the week.
Impact of Outflows on Overall ETF Performance
Despite the positive net inflows, the overall performance of the ETFs was impacted by significant outflows from Grayscale’s Ethereum Trust (ETHE), which faced $180 million in withdrawals. This contributed to a total outflow of $406.4 million across all nine funds.
ETF Issuers Explore Options Products
In response to the evolving market, ETF issuers are pushing to introduce options products for their spot ETH funds. Last week, the New York Stock Exchange (NYSE) American proposed a rule change to list and trade options for three Ether ETFs managed by Grayscale and Bitwise. The proposed options include:
- Bitwise Ethereum ETF (ETHW)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Ethereum Mini (ETH)
Ethereum Network Burn Rate Hits Record Low
The Ethereum network has seen its ETH burn rate drop to its lowest level of the year. Recent base fees for transactions have fluctuated between 1 and 2 gwei, reflecting a decrease in network activity. On Saturday, only 210 ETH were burned, a sharp decline from the 5,000 ETH burned on August 5 when gas fees spiked to around 100 gwei.
This reduced burn rate has led to a rise in the network’s inflation, with a net ETH emission of over 2,000 ETH on the same day.
In summary, while U.S. spot Ethereum ETFs have achieved positive net inflows despite Ether’s price decline, the broader Ethereum network is experiencing significant changes in its burn rate and inflation metrics.
