Ethereum ETFs Face Outflows After Strong July Rally

Spot Ethereum exchange-traded funds experienced $376 million in outflows over five trading days ending Aug. 4, as investors appear to be taking profits following the cryptocurrency's 40.5% surge in July, according to data from Farside Investors.

The outflows follow July's record-breaking performance, when nine spot Ethereum ETFs claimed the top 10 spots in monthly ETF performance rankings with 48% returns, according to FactSet data. The profit-taking comes as Ether retreated from recent highs, recently trading at around $3,583.

Read More: Ethereum ETFs Lead July's Top ETF Performers

ETHA Leads Exodus

BlackRock, Inc.'s (BLK) iShares Ethereum Trust (ETHA) led the exodus with $375 million in outflows on Aug. 4 alone, according to Farside data. The fund, which attracted $4.2 billion in inflows during July's rally, saw its five-day outflow total reach $112.8 million.

The Fidelity Ethereum Fund (FETH) posted $78 million in outflows over the five-day period, the data show. The fund had drawn $619.2 million in July flows during the crypto surge.

Meanwhile, the Grayscale Ethereum Mini Trust (ETH) experienced $75.7 million in outflows, while the firm's larger Grayscale Ethereum Trust (ETHE) lost $43.2 million, according to Farside data.

Broader Crypto Retreat Pressures Funds

The outflows coincided with Ether's 5% decline over the past week, though the cryptocurrency remains up 40.5% for the month and 7.5% year to date, according to CoinMarketCap data.

The selling pressure extended across the sector. The Bitwise Ethereum ETF (ETHW) saw $40.3 million in outflows on Aug. 1, while the VanEck Ethereum ETF (ETHV) lost $5.2 million over the period, the data reveal.

Smaller players also felt the pressure. The Franklin Ethereum ETF (EZET) experienced $5.4 million in outflows, while the Invesco Galaxy Ethereum ETF (QETH) lost $8.4 million, according to Farside data. The 21Shares Core Ethereum ETF (CETH) posted $7 million in outflows over the period.

Source: etf.com & Farside Investors

Despite the recent outflows, spot Ethereum ETFs have attracted $6.4 billion in net inflows year to date, the data show. The funds' July performance surge reflected broader crypto momentum as Ethereum outpaced Bitcoin's gains during the month.