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Ether and Bitcoin ETFs see continued outflows, led by Grayscale: JPMorgan

Published 12/08/2024, 11:58 pm
© Reuters
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Both Bitcoin and Ether prices are bouncing back more from last week’s global market slump. But in the short term, the overall trend of crypto investments is probably going to follow the performance of tech stocks and risk appetite, which has been pretty muted so far.

JPMorgan (NYSE:JPM)'s analysts highlighted the ongoing trend of outflows for both Ether and Bitcoin ETFs, with Ether ETFs closing the week with $105 million in net sales, while Bitcoin ETFs saw net redemptions totaling $169 million.

Spot Ether exchange-traded funds in the U.S. bourses continued negative flows on Friday, recording $16 million in net outflows on their 16th trading day. JPMorgan (JPM) said in a research report.

According to the bank calculations, Grayscale’s Ethereum Trust (ETH) (NYSE:ETHE) fund led the outflows with a reduction of $42 million, though this was below its average since launch. 

In contrast, BlackRock’s iShares Ethereum Trust ETF (NASDAQ:ETHA) continued to perform relatively well, attracting $20 million in sales, pushing its total net flows to over $900 million since its launch. However, the world’s largest asset manager said the management fee for its ether fund will not increase from 12 basis points to 25 basis points until the fund reaches $2.5 billion in assets.

On the same day, U.S. spot Bitcoin ETFs also suffered net redemptions of $90 million, following a strong performance the previous day. 

Grayscale’s Grayscale Bitcoin Trust (BTC) (NYSE:GBTC) led outflows among 12 bitcoin funds with $77 million. GBTC continues its notorious streak as the worst-performing ETF by outflows since its launch in January, with a total of roughly $20 billion pulled out so far.

However, BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) managed to bring in $10 million in sales. The largest spot bitcoin ETF in terms of net asset value contributed to the $266 million in net sales since its spin-out from GBTC two weeks ago.

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