ETH/USD: Ether ETFs Log Just One Day of Net New Inflows in Second Half of August

ETH ETFs paused for Labor Day on Monday and are poised to resume trading today after second half of August only had one positive day of inflows — blame Grayscale for the underwater time.

• Ethereum ETFs, the nine exchange-traded funds that hold genuine Ether, aren’t having the time of their lives. For the second half of August, they had just a single day in green in terms of new money flowing in. Net new inflows, the money that stays after the cash leaving, only turned positive on August 28, logging all other 11 trading days in the red since August 15.
• Investor interest in the novel asset class that is now rubbing shoulders with stocks and bonds is yet to perk up. One reason for the lukewarm demand for Ether-based products on Wall Street: traders and ordinary investors are yet to warm up to the asset. In contrast to Bitcoin, which is considered a store of wealth, Ethereum is more tech-oriented and its applications lean more toward the geeks and the tech-savvy.
• With this said, Ether ETFs broadly have been bleeding cash because asset manager Grayscale converted its Ether trust into an Ether ETF and investors have pulled a total of $2.5 billion since conversion. Other than that, BlackRock’s ETF, ETHA, is the biggest one with over $1 billion in assets. Bitcoin ETFs have picked up a total of $17 billion in net new inflows since January launch, while Ether’s investment vehicles are underwater by $477 million since July launch.