Ethereum ETFs See $1 Billion in First-Day Trading Volume and $107 Million Inflows
Spot ether exchange-traded funds (ETFs) marked a significant debut in the US, generating a trading volume exceeding $1 billion on their first day of trading.
According to data shared by Bloomberg ETF analyst Eric Balchunas, nearly half of this trading volume was attributed to the recently transformed Grayscale Ethereum Trust (ETHE). Balchunas’ colleague James Seyyfart highlighted that ETHE experienced a substantial outflow of $484 million, whereas the Grayscale Ethereum Mini Trust, traded as “ETH,” observed $15 million in inflows.
The various spot ether ETFs demonstrated positive performance on their inaugural trading day. BlackRock’s Ishares Ethereum Trust ETF (ETHA) led the pack with inflows totaling $266.5 million, as reported by Bloomberg data. Bitwise’s Bitwise Ethereum ETF (ETHW) followed closely behind with $204 million in inflows.
Major players in asset management such as Fidelity and Franklin Templeton observed comparatively moderate inflows. Fidelity Ethereum Trust (FETH) recorded inflows of $71.3 million, while Franklin Ethereum ETF (EZET) saw $13.2 million in inflows.
Other spot ether ETFs including VanEck Ethereum Trust (ETHV), Invesco Galaxy Ethereum ETF (QETH), and 21 Shares Core Ethereum ETF (CETH) saw inflows of $7.6 million, $5.5 million, and $7.5 million, respectively.
The trend of inflows into spot ether ETFs is anticipated to remain consistent in the near future, largely due to the fee structure of Grayscale’s ETHE, which is reported to be ten times higher than its competitors.
Conversely, Bitwise, a crypto investment firm, has pledged to allocate 10% of the profits generated from its ether ETF fees to support the development teams working on the Ethereum open-source protocol.
Bitwise expressed their enthusiasm for this initiative, emphasizing their commitment to backing the individuals dedicated to enhancing Ethereum’s security, scalability, and overall usability.
The developments within the spot ether ETF market are closely monitored as market participants navigate the evolving landscape of crypto investments and asset management strategies.
