Ethereum spot exchange-traded funds (ETFs) have seen a positive net inflow of $5.8 million after nine consecutive days of net outflows. BlackRock’s ETHA ETF had the largest inflow, attracting $8.4 million, followed by Fidelity’s FETH ETF with an inflow of $1.3 million. On the other hand, Grayscale’s ETHE ETF experienced an outflow of $3.8 million, indicating some ongoing selling pressure despite the overall positive trend. This marks the first net inflow for Ethereum ETFs after nearly half a billion dollars in outflows within the first five weeks of their launch.
The recent streak of net outflows for Ethereum ETFs, lasting for nine days, was the longest since their inception last month. Analysts from JP Morgan had predicted weaker flows for Ethereum ETFs compared to Bitcoin ETFs due to factors such as the absence of staking and lower liquidity. The unexpected outflows from Grayscale ETHE ETF led asset managers to discuss the potential launch of a combined Bitcoin and Ethereum spot ETF. Meanwhile, Bitcoin spot ETFs also faced challenges on Wednesday, with a total net outflow of $105 million, including significant outflows from Grayscale ETF GBTC and ARKB.
In a related development, BlackRock listed an Ethereum ETF on Brazil’s stock exchange, B3, under the ticker ETHA39 on August 28. This move marks the expansion of BlackRock’s cryptocurrency offerings internationally, following the listing of its iShares Bitcoin Trust in Brazil through a depositary receipt. The Ethereum ETF will be available to both retail and institutional investors in Brazil, with management fees set at 0.25% annually. However, these fees will be reduced to 0.12% during the first year or until the fund reaches $2.5 billion in assets under management, making it more accessible to local investors.
Brazil has been at the forefront of allowing the trading of crypto-related products on its stock exchange, with the introduction of 15 ETFs or depositary receipts linked to digital assets. BlackRock’s Ethereum ETF launch in Brazil follows the success of its iShares Bitcoin Trust, which experienced significant demand in the country. Cristiano Castro, BlackRock’s director in Brazil, mentioned that IBIT is the fastest-growing ETF in history over a three-month period, indicating strong demand for digital asset investment products. Additionally, Brazilian regulators have recently approved the world’s first spot Solana-based ETF, further expanding the range of crypto-linked products available to investors in the country.
The ongoing developments in the Ethereum and Bitcoin ETF space reflect the growing interest in digital assets among investors globally. Despite challenges such as outflows and regulatory uncertainties, the launch of new products such as BlackRock’s Ethereum ETF in Brazil highlights the increasing adoption of cryptocurrencies by traditional financial institutions and investors. With Brazil leading the way in offering a diverse range of ETFs and depositary receipts linked to digital assets, investors in the country have more options to participate in the crypto market. As the crypto industry continues to evolve, innovative products and regulatory approvals will play a crucial role in shaping the future of digital asset investment.
