Ethereum ETFs Debut With Trading Volumes Exceeding $1 Billion

ETF analyst Eric Balchunas noted that excluding Grayscale’s ETHE, the $625 million in trading volume was robust. He anticipates a significant portion of this amount will convert into inflows.

Source: uzmancoin.com 

On their debut, the United States’ spot Ethereum exchange-traded funds (ETFs) collectively achieved approximately $1.08 billion in trading volume, roughly 23% of the trading volume observed for spot Bitcoin ETFs on their first day.

The converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) saw the highest trading volumes on July 23, with $458 million and $248.7 million, respectively, according to preliminary data from Bloomberg ETF analyst Eric Balchunas. The Fidelity Ethereum Fund (FETH) and Bitwise Ethereum ETF (ETHW) rounded out the top four with $137.2 million and $94.3 million, respectively. Meanwhile, the 21Shares-issued spot Ether ETF came in last, failing to reach the $10 million mark.

Balchunas described the $625 million in volume from the Newborn Eight products (excluding ETHE) as healthy, predicting that a substantial portion could convert into inflows. Fellow ETF analyst James Seyffart estimated potential inflows ranging between $125 million and $325 million, contingent upon investor interest. In contrast, spot Bitcoin ETFs saw $655.2 million in inflows on their debut day in January, inclusive of a $95 million outflow from Grayscale’s converted Bitcoin product.

With the exception of ETHE, all spot Ethereum ETFs will charge a base fee between 0.15% and 0.25%. ETHE retains its fee at 2.5%. BlackRock offers an initial discounted fee of 0.12% for 12 months or until reaching $2.5 billion in net assets, after which it adjusts to 0.25%. Similarly, the Grayscale Ethereum Mini Trust starts at 0.12%, increasing to 0.25% after 12 months or upon reaching $2 billion in net assets. The Invesco Galaxy spot Ethereum ETF carries a 0.25% fee.

Ethereum’s price traded around $3,470 on its debut day, fluctuating between $3,400 and $3,500.

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