This past Tuesday marked a notable comeback for Ethereum spot ETFs, showcasing their best performance since early August after a rough patch that left investors feeling a bit underwhelmed. September was particularly tough for these crypto investment products, which struggled to gain traction even amidst some positive market movements.
The previous week had seen Ethereum ETFs grappling with their sixth straight week of negative flows, with a staggering $26.26 million in outflows. While Bitcoin ETFs basked in the glow of inflows, Ethereum-based offerings were feeling the heat.
The Grayscale Ethereum Trust (ETHE) faced significant outflows, and the new ETFs were barely making waves. In fact, there was a rare lull between August 30 and September 2, where not a single inflow or outflow was recorded across all Ethereum ETFs—a stark contrast to the vibrant activity seen since the launch of US spot crypto ETFs back in January.
Trading volumes for Ethereum ETFs have also been lackluster, plummeting to just 15% of what they were during their launch week. The downward spiral continued into this week, with Monday witnessing a jaw-dropping net outflow of $79.3 million—one of the worst days since these products hit the market. ETHE was at the forefront of this decline, leading the charge with $80.6 million in outflows.
However, the tides turned dramatically on Tuesday. Mads Eberhardt, a senior analyst at Steno Research, reported that Ethereum spot ETFs experienced one of their largest positive net flows in months, raking in $62 million.
BlackRock’s ETHA spearheaded this recovery, contributing a whopping $59.3 million, while VanEck’s ETHV and Invesco’s QETH added $1.9 million and $1.3 million, respectively.
Remarkably, no outflows were recorded for any of the issuers, including Grayscale’s ETHE, marking it as the third-best day for Ethereum ETFs since their inception. It was also a triumphant day for ETHA, its best since August 6.
In a related twist, the US Securities and Exchange Commission (SEC) has postponed its decision on options trading for Ethereum ETFs, extending
