Ethereum ETFs Day 2 Trading Volume Exceeds Predictions

This week marked the official approval and launch of spot Ethereum ETFs, sparking excitement within the crypto community over this significant industry milestone. The ETH-based investment products had an impressive debut, with a volume exceeding $1 billion on the first day. As the ETFs entered their second day, experts noted that the volume surpassed initial expectations.

The US Securities and Exchange Commission (SEC) granted the final approval for spot Ethereum ETFs on Monday, with the official launch scheduled for Tuesday, July 23. Prior to the launch, industry insiders and experts engaged in discussions about the anticipated performance of the ETH ETFs in comparison to their Bitcoin counterparts.

Expectations varied, with many speculating that Ethereum-based products would achieve only about 20%-30% of the success seen by Bitcoin ETFs. Katherine Dowling, Bitwise’s CCO, emphasized that the ETH ETFs presented a more nuanced investment opportunity compared to Bitcoin. This sentiment was echoed by American entrepreneur Anthony Pompliano, who highlighted the less clear narrative surrounding Ethereum’s value proposition compared to Bitcoin’s “digital gold” narrative.

Following their launch, spot ETH ETFs met experts’ expectations, generating approximately $1.05 billion in volume on the first day, representing 24% of the volume achieved by spot BTC ETFs on their respective launch days. According to Bloomberg expert Eric Balchunas, the eight new ETH ETFs accumulated $590 million in volume on day one, equivalent to 83% of the volume generated by nine new BTC ETFs.

Despite significant outflows of $484 million from Grayscale’s Ethereum Trust (ETHE), the ETH ETFs attracted $107.8 million in inflows on the first day, with Blackrock’s iShares Ethereum Trust (ETHA) and Bitwise Ethereum ETF (ETHW) leading the inflows with $266.5 million and $204 million, respectively.

On the second day, Ethereum ETFs continued to surprise experts by maintaining high trading volumes. Bitwise’s president, Teddy Fusaro, reported that the ETH ETFs traded around $852 million in value by midday, slightly below the trading volume of its Bitcoin counterparts. Although the second day saw strong performance, net flows closed in the red due to significant outflows, particularly from ETHE.

Despite the outflows, experts viewed the launch of Ethereum ETFs as successful, with a 5% drop in volume on the second day. Compared to standard ETF launches, the ETH ETFs exceeded expectations, ranking among the top 10% of ETF launches in the past year. The performance of these new investment products has been closely monitored and has garnered attention within the crypto community for its potential impact on the market.