Greyscale’s ETHE ETF Stops Hemorrhaging After $2.3 Billion Ether Outflow Since Launch
TLDR
Grayscale Ethereum Trust (ETHE) posted its first day of zero flow since the switch and Layer-2 Networks recently saw $5.0 million in revenue for ETH ETFs, while Bitcoin ETFs had $27.8 million in revenue on August 12. Since the launch of digital asset investment products, total spending of $401.4 million has included $176 million in market corrections.
The Greyscale Ethereum Trust (ETHE) has released its first zero exit date since converting to a spot exchange-traded fund (ETF). This growth comes as Ethereum and its Layer-2 networks experience a surge in activity.
ETHE, which has seen an outflow of nearly $2.3 billion in Ether since July 23, 2024, finally ended its streak of daily outflows on August 12. This represents more than 25% of its total holdings, which was $9 billion previously. turn into.
On the same day, the US-based spot Ether ETF turned positive for the fifth time since its inception. Ethereum ETFs saw a little over $5.0 million in revenue, according to Farside data. However, total outflows from the Ethereum ETF since its inception remain at $401.4 million.
In comparison, Bitcoin ETFs saw the highest inflows on August 12, totaling $27.8 million. ARK's ARKB led the way with $35.4 million in revenue, bringing its total revenue to $2.5 billion. BlackRock's IBIT followed with $13.4 million in revenue. Some funds saw outflows, with Bitwise's BITB and Grayscale's GBTC facing $17.1 million and $11.8 million in expenses, respectively.
The stability of ETHE exits is related to the activity on the Ethereum network and layer-2 solutions. Transaction volumes of Ethereum-based decentralized exchanges (DEXs) increased by 12% in a 24-hour period, while Solana-based DEXs showed a 10% decrease in the same time frame.
Layer-2 networks on Ethereum have also seen increased activity. Uniswap, an Ethereum-based DEX, recorded a record 8.65 million new addresses created by Layer-2 networks in July, almost double the 4.93 million added in June. Base and Arbitrum, two popular layer-2 networks, boast 2.64 million and 1.37 million weekly active users.
The total value locked (TVL) across all Ethereum layer-2 networks has now reached $37.7 billion, with the Ethereum mainnet having $85 billion in TVL. In the year On August 12, Ethereum's layer-2 networks collectively processed 298 transactions per second, up from the all-time high of 322 TPS reached on July 18.
In the broader context of digital asset investment products, investors took advantage of last week's market correction to inflow nearly $176 million, according to a recent report. Total assets under management (AuM) investment products fell to $75 billion during the initial correction, but have since recovered to $85 billion.
Country-specific data reflects different investor sentiments. The U.S. grossed the most at $89 million, followed by Switzerland at $20 million, Brazil at $19.9 million, and Canada at $12.6 million. However, the United States received the largest net inflow at around $306 million.
Greyscale, a significant institutional investor, now holds a total of approximately 2.25 million ETH, including approximately 360,000 ETH in the newly launched Greyscale Ethereum Mini Trust (ETH).
This represents a 25% reduction in Ethereum holdings for Greyscale.
