Ethereum ETFs Post $100 Million in Inflows on Debut
BITmarkets Team
Jul 26, 2024
United States Ethereum exchange-traded funds (ETFs) saw net inflows of $106.6 million on their first trading day, despite significant outflows from Grayscale’s newly-converted Ethereum Trust.
BlackRock’s iShares Ethereum Trust ETF (ETHA) led with $266.5 million in inflows, followed by the Bitwise Ethereum ETF (ETHW) with $204 million.
The Fidelity Ethereum Fund ETF (FETH) ranked third with $71.3 million in inflows.
The inflows to these "newborn" spot Ether ETFs offset the outflows from the Grayscale Ethereum Trust (ETHE), which experienced $484.9 million in outflows, amounting to 5% of the fund that was once valued at $9 billion.
ETHE, launched by Grayscale in 2017, allowed institutional investors to buy ETH with a six-month lock-up period on investments. Its conversion to a spot ETF now allows investors to sell their shares more easily, which may explain the substantial first-day outflows.
In January, spot Bitcoin ETFs experienced a similar situation with the Grayscale Bitcoin Trust, which saw over $17.5 billion in outflows following the launch of 11 spot BTC ETFs.
Meanwhile, Grayscale’s Ethereum Mini Trust — a lower-fee spinoff product — generated $15.2 million in new inflows.
Franklin Templeton’s Franklin Ethereum ETF (EZET) saw $13.2 million in net inflows, while 21Shares’ Core Ethereum ETF (CETH) recorded $7.4 million.
Overall, spot ETH ETFs achieved $1.08 billion in cumulative trading volume on their first day, representing 23% of the volume seen by Bitcoin ETFs on their debut.
At the time of publication, ETH is trading at $3,451, down 1.4% in the last 24 hours and 1.5% in the last week, according to TradingView data.
Spot Ether ETFs received final approval from the SEC on July 22 and began trading in the United States on July 23.
Sources:
https://cointelegraph.com/news/ethereum-etf-inflows-106-million-first-day-trading
https://x.com/JSeyff/status/1815849216012333400
