Spot Ethereum ETFs See Strong Debut with Over $1 Billion in Trading Volume
The first-day trading volume of U.S. spot Ethereum exchange-traded funds (ETFs) exceeded $1 billion, indicating high investor interest and market readiness for these new products. The launch of several spot Ethereum ETFs on Tuesday marks a significant milestone for the digital asset market.
BlackRock’s ETHA Leads the Way with Impressive Inflows
Data from Farside Investors revealed that BlackRock’s iShares Ethereum Trust (ETHA) took the lead on the first day with a net inflow of US$266 million. This outperformed other popular funds like Bitwise Ethereum ETF (ETHW) and Fidelity Ethereum Fund (FETH), which saw inflows of $204 million and $71 million, respectively.
In addition to BlackRock’s strong performance, other Ethereum ETFs such as Franklin Ethereum ETF (EZET), VanEck Ethereum ETF (ETHV), 21Shares Core Ethereum ETF (CETH), Invesco Galaxy Ethereum ETF (QETH), and Grayscale Ethereum Mini Trust (ETH) also reported high trading volumes.
However, the Grayscale Ethereum Trust Fund (ETHE) experienced a significant drop of $484 million, indicating investors may be cashing out to switch to spot ETFs, similar to the reaction seen with the launch of a physical Bitcoin ETF earlier this year.
Comparison Between Ethereum ETFs and Bitcoin ETFs
The introduction of spot Ethereum ETFs, similar to the spot Bitcoin ETF launched in January, saw a strong first-day trading volume that surpassed that of the Bitcoin ETF. On the flip side, U.S. spot Bitcoin funds experienced a loss of $78 million on Tuesday, ending a 12-day winning streak.
Forecasts for Ethereum ETF inflows vary widely, with bullish estimates from Galaxy Digital and Bitwise predicting substantial inflows by 2024 and 2025. On the bearish side, Mechanism Capital’s Andrew Kang has a more conservative outlook, citing a preference for Bitcoin and the lack of staking functionality in the Ethereum ETF.
Also Read: Mt. Gox Moved $2.8 Billion Worth of Bitcoin in Last 6 Hours
