ETH ETFs see over $1b of trading volume on launch day

On the first trading day of the newly launched Ether exchange-traded funds, investors showed great enthusiasm and the trading volume of over $1 billion worth of shares was reached.

According to FarSide data, the trading day for these ETFs closed with a significant net inflow of $106.7 million.

Ethereum ETFs generate $106.6 million inflows on launch day | Source: FarSide

Leading the charge were ETFs from BlackRock and Bitwise. BlackRock’s iShares ETF (ETHA) topped the charts with $266.5 million in net inflows, followed closely by Bitwise’s Ethereum ETF (ETHW) which gained $204 million.

Fidelity’s Ethereum Fund (FETH) also saw significant interest, raising $71.3 million.

In contrast, Grayscale’s Ethereum Trust (ETHE) experienced significant outflows, losing $484.9 million, equivalent to 5% of its former $9 billion valuation. Originally launched in 2017, ETHE allowed institutional investors to purchase ETH with a six-month lockup period.

The move to a spot ETF format streamlined the stock sales process and contributed to the significant outflows observed on launch day.

Grayscale also saw new money flow into its Ethereum Mini Trust, which attracted $15.2 million in inflows. Other funds like Franklin Templeton’s (EZET) and 21Shares’ Core Ethereum ETF (CETH) saw inflows of $13.2 million and $7.4 million, respectively.

Despite the robust trading volume reaching $1.077 billion, it remained below the levels seen during the launch of spot Bitcoin ETFs in January, which increased fivefold.

The price of Ether (ETH), the world’s second-largest cryptocurrency, fell on July 23, impacting the performance of these new ETFs. At market close, Ether was trading flat at $3,486.75.

The launch of these ETFs represents a significant development in the crypto industry’s ongoing efforts to classify Ether as a commodity rather than a security.

While the Securities and Exchange Commission has not definitively classified Ether, filings describe the new products as commodity-based trusts.

Ophelia Snyder, co-founder and president of 21Shares, described the launch of Ethereum ETFs in the US as a turning point for the digital asset sector, stating that transactions were progressing as expected and emphasizing the importance of Ethereum’s long-term potential.

“The demand is there, and now U.S. investors can gain market exposure to the innovative power of the Ethereum blockchain through a suite of ETFs on a regulated exchange,” Snyder told crypto.news.

He stated that this development is positive for both professional and individual investors and will help Ethereum continue to play an important role in the future of internet and technology investments.