The US-traded spot Ethereum (ETH) exchange-traded funds (ETFs) registered $476 million in negative net flows during the first month of trading, failing to overcome the outflows stemming from the unlock of Grayscale’s ETHE.

Bloomberg senior ETF analyst Eric Balchunas the “heroic” performance of the Newborn Nine spot Bitcoin (BTC) ETFs, which recorded enough inflows to heavily overshadow the massive outflows experienced by GBTC.

The performance contrasts sharply with the $5 billion inflows seen by Bitcoin ETFs during a similar timeframe after their launch.

Analysts have attributed this disparity to several factors, including Bitcoin’s “first mover advantage,” the absence of staking options in Ethereum ETFs, and lower liquidity in the Ethereum market, making these ETFs less appealing to institutional investors.

Despite these challenges, some Ethereum ETFs showed signs of recovery towards the end of the month. Balchunas added that the outflows won’t continue forever, and the newly launched ETFs’ inflows will eventually catch up to the outflows. He said:

“But good news is unlock will end, there’s light at end of tunnel.”

Over $2 billion in inflows

Grayscale’s ETHE shed nearly $2.6 billion in its first month, based on Farside Investors data. The move was expected, as the same happened with its Bitcoin trust GBTC.

Although the other Ether ETFs’ inflows were not enough to secure a positive monthly net flow, the amount of cash directed to these crypto products has been significant nonetheless.

BlackRock’s ETHA surpassed $1 billion in inflows, making it the seventh-largest ETF by year-to-date flows, according to a list shared.

Fidelity’s FETH also registered significant flows of roughly $393 million, making it the 19th largest ETF by year-to-date flows, while Bitwise’s ETHW is the third and last US-traded Ethereum ETF that managed to capture over $300 million in inflows during its first year.

Moreover, despite Grayscale’s ETHE’s massive outflows, its Ethereum mini trust, ETH, managed to capture nearly $240 million in inflows.

I the total inflows of US-traded Ethereum ETFs are bundled under one product, it would equate to the fourth-largest exchange-traded fund by 2024’s flows.