United States Ether ETFs See Strong Inflows on First Day of Trading

On their first day of trading, United States Ether exchange-traded funds (ETFs) made a splash in the market, attracting a net inflow of $106.6 million. This impressive debut comes despite significant outflows from Grayscale’s Ethereum Trust, which saw a massive $484.9 million leaving the fund.

Leading the pack were BlackRock and Bitwise’s ETFs, with BlackRock’s iShares ETF (ETHA) bringing in $266.5 million and Bitwise’s Ethereum ETF (ETHW) attracting $204 million in net inflows. Fidelity’s Ethereum Fund (FETH) also performed well, coming in third with $71.3 million in inflows.

The launch of these new spot Ether funds seems to have provided investors with a more attractive option compared to Grayscale’s Ethereum Trust, which imposed a six-month lock-up period on investments. The ability to easily sell shares in the new ETFs likely contributed to the high outflows from Grayscale’s trust on the first day of trading.

Despite the outflows from Grayscale, other Ethereum-related funds saw positive inflows on the day. Grayscale’s Ethereum Mini Trust, a lower-fee spinoff product, brought in $15.2 million, while Franklin Templeton’s fund (EZET) and 21Shares’ Core Ethereum ETF (CETH) attracted $13.2 million and $7.4 million, respectively.

Overall, the spot ETH funds generated $1.08 billion in cumulative trading volume on their debut day, accounting for 23% of the volume seen by spot Bitcoin ETFs on their launch day. The price of ETH experienced a slight decline, trading at $3,451 at the time of publication, down 1.4% in the last 24 hours and 1.5% on the week.

The Ether ETFs received approval from the SEC on July 22 and began trading in the United States on July 23. Despite the initial price dip, investors seem optimistic about the potential of these new ETFs to provide exposure to the growing Ethereum market.