Ethereum ETF Launch Brings $2.2 Billion Inflows, But Here’s the Catch

CoinShares, the blockchain analytics firm, published a fresh report earlier today stating that the launch of the spot Ethereum ETFs last week brought over $2.2 billion in inflows into the crypto market. this was reportedly the highest weekly inflow registered since December 2020. However, the strong selling in products like the Grayscale’s ETHE spoiled the complete show.,Within the first week of launch, the Grayscale Ethereum ETF (ETHE) saw outflows to the tune of $1.5 billion, or nearly 20% of the assets under management. BlackRock, Fidelity, Bitwise, and other ETFs witnessed a total of net inflows of $1.18 billion in the first week. Thus, the net outflows for the Ether ETFs in the first week stood at $338 million. However, the Ether ETP products worldwide saw trading volumes surge by 542%.,,Also Read: Nate Geraci Calls Spot Ether ETFs A Success Despite Outflows,CoinShares notes that this is a similar situation to what happened in the Bitcoin ETF market within the first week of launch. Last week, the spot Bitcoin ETFs in the US registered inflows of $519 million, thereby taking the monthly inflows to $3.6 billion and 2024 inflows to $19 billion.,With flows into either direction, the inflows into digital asset investment products last week remain muted at $245 million, reported CoinShares. However, the Ethereum ETF launch helped the trading volumes to surge to the highest levels since May at $14.8 billion last week.,Recent price appreciation has increased total assets under management (AuM) to US$99.1 billion, with year-to-date (YTD) inflows reaching a record-breaking US$20.5 billion.,The Ethereum price is showing strength gaining more than 4.8% in the last 24 hours and trading closer to $3,400. As per data from CryptoQuant, the ETH open interest has surged by $1.5 billion in the last three weeks. With the surge in leveraged trading, liquidations become inevitable. CryptoQuant notes that one can expect greater volatility going ahead.,,Also Read: Ethereum Price Poised for Rebound as Institutional Interest Hits Record High,