Ethereum
Here’s How Much Money Spot Ether ETFs Raised On First Day Of Trading
Key points to remember
- Ether Spot exchange-traded funds (ETFs) saw a total of $107.8 million in inflows on their first day of trading on Tuesday.
- Blackrock’s iShares Ethereum Trust had the most successful launch, with $266.5 million in inflows, followed by the Bitwise Ethereum ETF with $204 million.
- Grayscale’s Ethereum Trust saw massive outflows of $484.1 million.
- Grayscale capital outflows could depress Ether spot ETF inflows and Ether prices in the near term.
- Ether was down 1.3% in early trading on Wednesday, but recovered by early afternoon in the United States.
Spot Ether ETFs generated $107.8 million in total inflows and surpassed a 1 billion dollars in terms of trading volume on their first day of trading.
Among the nine ETFs that began trading on Tuesday, iShares Ethereum Trust (ETHA) was the top performer in terms of inflows, with $266.5 million, according to data analyzed by Bloomberg analyst James Seyffart. The Bitwise Ethereum ETF (ETHW) had the second best performance with $204 million in inflows. No other product among the new spot ether ETFs crossed the $100 million mark in inflows.
Grayscale Reports Massive Capital Outflows
Grayscale Ethereum Trust (ETHÉ), which converted from an existing fund to an ETF on Tuesday, saw investors withdraw a net $484.1 million, though it remains the largest ether ETF by assets. The outflows were likely driven by higher fees to the Grayscale Ethereum Trust and it was not unexpected.
Grayscale’s ETHE outputs are similar, although more pronounced, to those What happened to the Grayscale Bitcoin Trust? (GBTC) once spot Bitcoin ETFs began trading in January. Some analysts expect investors to pull their money out of the new ETHE fund curb ether prices ((ETH) short term.
For comparison, the Bitcoin spot ETF market saw $655.3 million in inflows on its first day of trading, according to Farside Investors. Despite the positive inflows for Ether spot ETFs on Tuesday, the price of ether was down 1.3% in early trading on Wednesday. By 1 p.m. ET, it had recovered to be down just 0.08%.