Ethereum ETF launch sees $2.2 billion in inflows

The launch of an exchange-traded index fund (ETF) linked to physical Ethereum (ETH) has seen the largest inflow of funds since December 2022.
CoinShares reported that the newly launched ETH ETF recorded $2.2 billion in inflows, and ETH exchange-traded product
ETP inflows increased 542%. Meanwhile, Grayscale's existing trusts saw outflows of $1.5 billion, resulting in a net inflow of $285 million.
In addition to ETH's movements, Bitcoin (BTC) recorded inflows of $3.6 billion (approximately JPY 555 billion) in the past month, bringing its year-to-date (YTD) total to $19 billion (approximately JPY 3 trillion).
According to analysts at CoinShares, the surge was driven by speculation over the US presidential elections and the possibility of BTC becoming a strategic reserve.
He also said that investors' confidence in BTC is growing again due to expectations that the Federal Reserve will cut interest rates in September.
According to the report, the digital asset market continues to grow, with total assets under management reaching $99.1 billion. Total inflows in 2024 are expected to grow by $20.5 billion from the start of the year.
The ETH ETF hit a record high in May, with trading volumes of all digital assets hitting an all-time high.
This record was broken last week, reaching $14.8 billion. This was the largest digital asset investment trade volume in the past week.
This was a big boost to the ETH ETF's launch, even as inflows into the product were limited to $245 million.
On July 26, Grayscale's Ethereum Trust ETF (ETHE) saw a $1.5 billion outflow.
The newly converted Ethereum Trust ETF will be the first to offer physical ETH in the U.S. on July 23.
Since the ETF was launched, over $1.5 billion has been withdrawn. Meanwhile, Grayscale's Ethereum Mini Trust ETH (ETH)
is doing well, recording a net inflow of $44.9 million (about 7 billion yen) on July 26th.