In July 2023, Ethereum exchange-traded funds (ETFs) demonstrated strong results, attracting significant investments and accumulating assets.
BlackRock’s Fund Takes the Lead
BlackRock's iShares Ethereum Trust led again, collecting $440.10 million in net inflows on a single Friday. The fund now manages $10.69 billion in assets, making it the largest spot Ethereum ETF in the United States.
Other funds also saw positive movement, although on a smaller scale. Bitwise's ETHW brought in $9.95 million, while Fidelity's FETH added $7.30 million. However, Grayscale's ETHE continued to struggle, seeing $23.49 million in withdrawals, raising its total outflow to $4.29 billion.
Reasons for Interest in ETH ETFs
The steady inflow is driven by both retail and institutional investors who are confident in Ethereum's long-term value. They believe Ethereum's role in areas such as decentralized finance (DeFi), staking, and smart contracts lends it value beyond being just a cryptocurrency.
According to Bitwise's Matt Hougan, rising interest in stablecoins and tokenized assets is another reason demand for ETH ETFs is likely to stay strong.
Bitcoin ETFs Also Rebound
While Ethereum is seeing a steady rise, Bitcoin ETFs also made a comeback, attracting $130.69 million in new investments after a few days of outflows. Nevertheless, Bitcoin ETFs still hold a strong position with total inflow now standing at $54.82 billion and total net assets reaching $151.45 billion.
These results highlight a significant growth in interest towards Ethereum ETFs as well as a successful recovery of Bitcoin ETFs, indicating an overall positive trend in the cryptocurrency market.
