ETH Bounces Back Amid ETF Inflows

Ether is showing its first signs of relative strength since spot Ethereum ETFs launched on July 23.

The ETH/BTC ratio is up 5% off the lows set on July 27 after the Ethereum ETFs recorded their first net inflows on July 30. Blackrock’s ETHA led the pack and was responsible for $118 million of the $141.6 million total inflows. Meanwhile, Grayscale’s ETHE offloaded another $120.3 million.

Grayscale’s outflows are beginning to cool off, indicating that the fund’s sell-off period may be close to ending in the short term. After dumping $1.15 billion in ETH during the first three days of trading as an ETF, Grayscale sold just $463 million of ETH over the last three days, a 60% decrease.

Investors were able to buy shares of Grayscale’s Ethereum Trust (ETHE) at a discount to its net asset value (NAV) prior to the SEC’s approval of spot Ethereum ETFs. The discount has disappeared after ETHE’s conversion into an ETF, and investors can redeem their shares at a profit, which contributes to the selling pressure on ETHE.

Despite the negative flows, ETH is showing relative strength while the market dips. Bitcoin is down 0.7% in the last week, whereas ETH is up 0.1% during the same period.