Ethereum ETFs Begin Trading on US Exchanges
Ethereum exchange-traded funds (ETFs) have begun trading on stock exchanges, with analysts revealing the initial inflow data for the first 15 minutes.
According to Bloomberg senior ETF analyst Eric Balchunas, Bitwise outperformed its rivals in the initial quarter-hour, recording $25.5 million in capital inflows, second only to Grayscale’s Ethereum Trust, which was created in 2017.
Total inflows into the nine Ether investment vehicles reached $112 million in the first 15 minutes of trading, significantly higher than traditional ETF offerings, according to the Bloomberg analyst.
Balchunas also noted that while current inflows into Ether ETFs are about half of those seen on the first day of the Bitcoin ETF launch, they still surpassed expectations.
Despite the launch of the much-anticipated Ether ETF and the initial $112 million in inflows, the price of Ether has decreased since the start of the trading day.
Ether started the day trading at approximately $3,540 before dropping to a low of $3,426. It then recovered slightly and is currently trading at around $3,471.
To attract investors, most of the nine Ether ETF issuers have reduced fees or eliminated them temporarily, highlighting the competitive landscape among issuers.
In a July 17 filing with the United States Securities and Exchange Commission, 21Shares disclosed its plan to waive fees for the first six months of trading, followed by a 0.21% management fee after this period.
BlackRock adopted a similar fee discount strategy, offering an initial 0.12% management fee, which will increase to 0.25% after one year or once the ETF reaches $2.5 billion in assets under management, whichever comes first.
Bitwise utilized a unique approach by pledging 10% of its spot Ether profits to support Ethereum developers in collaboration with the Protocol Guild, representing over 170 Ethereum builders.
Sources:
https://cointelegraph.com/news/ether-etfs-trading-preliminary-inflow-data-revealed
