United States-based spot Ether exchange-traded funds (ETFs) saw net outflows of $113.3 million on their second trading day, mainly due to significant withdrawals from Grayscale’s recently converted Ethereum Trust.
Seven out of the eight new spot Ether ETFs reported net inflows on their second day. Leading the way were the Fidelity Ethereum Fund (FETH) with $74.5 million and the Bitwise Ethereum ETF (BITW) with $29.6 million in net inflows.
BlackRock’s iShares Ethereum Trust (ETHA), which had the highest inflows on the first day, attracted $17.4 million on the second day.
However, these gains were overshadowed by substantial outflows from the Grayscale Ethereum Trust (ETHE), which saw $326.9 million withdrawn.
Grayscale launched ETHE in 2017 to allow institutional investors to buy ETH, with a six-month lock-up period for investments. After converting to a spot Ether fund on July 22, it became easier for investors to sell their ETH.
In the two days after the conversion, ETHE experienced $811 million in outflows, with investors selling off just over 9% of the fund’s holdings.
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