Promising Start for US Spot Ether ETFs
The newly launched spot Ether exchange-traded funds (ETFs) in the United States have shown a promising start. On their first trading day, they recorded positive net flows despite significant outflows from Grayscale’s Ethereum Trust.
Key Inflows and Trading Volume
According to data from SoSoValue released on Wednesday, July 24, 2024, the US ETH ETFs saw net inflows of $106.6 million into their portfolios. Here’s a breakdown of the top performers:
- BlackRock’s iShares Ethereum Trust ETF (ETFA): $266.5 million
- Bitwise Ethereum ETF (ETHW): $206 million
- Fidelity Ethereum Fund ETF (FETH): $71.3 million
Other funds also experienced positive flows, including:
- Franklin Templeton’s $EZET: $13.2 million
- VanEck Ethereum ETF ($ETHV): $7.6 million
- 21 Shares’ $CETH: $7.47 million
- Invesco’s $QETH: $5.5 million
Impact on Grayscale Ethereum Trust
These inflows were sufficient to offset the $484.11 million outflow from the Grayscale Ethereum Trust ($ETHE). The spot Ether funds recorded a total traded value of $1.11 billion on their first day, with total net assets under management reaching $10.24 billion, marking a 2.45% increase from pre-launch values.
Regulatory Developments and Future Outlook
This development follows the SEC’s approval of 11 spot Bitcoin ETFs earlier this year, which have seen significant growth and spurred the launch of other crypto asset funds, including Ethereum and Solana-based funds. The approval of spot Ethereum ETFs was announced on Monday, July 22, by Bloomberg senior analyst James Seyffart, following weeks of anticipation after the SEC approved multiple 19b-4 filings on May 23. Bitwise’s chief compliance officer, Katherine Downling, had hinted at the launch earlier in the month.
The positive start for these Ethereum ETFs suggests growing investor interest in regulated crypto investment products and could potentially pave the way for further expansion in the crypto ETF market.
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