The launch of Ethereum ETFs achieved a milestone of over $1.1 billion in trading volume on their first day.
Ethereum ETFs have recently significantly impacted the market, with $10.2 billion in assets across nine ETFs. On their debut day, trading volumes exceeded $1.1 billion, showcasing strong investor interest.
Day 1 Recap: Ethereum ETFs now have $10.2 Billion in assets across 9 ETFs. Volumes on day 1 were over $1.1 billion for the group. Total net flows were +$107 million after a accounting for the massive -$484 million that came out of $ETHE. Very solid first day https://t.co/Cl92SkXJP9 pic.twitter.com/b7ZS2sGKs0
— James Seyffart (@JSeyff) July 24, 2024
Inflows and Trading Volumes
Fidelity (FETH) had an inflow of $71.3 million, while Grayscale ETHE had an outflow of $484 million. BlackRock and Bitwise ETFs led the way with $266.5 million and $204 million in inflows, respectively.
UPDATE: First full day of flows for the ETHness stakes are in. The Ethereum ETFs took in $107 million. @BlackRock’s $ETHA lead the way with $266.5 million followed by @BitwiseInvest’s $ETHW with $204 million. Very solid first day pic.twitter.com/j28vIwVWvR
— James Seyffart (@JSeyff) July 24, 2024
Bloomberg analyst Eric Balchunas suggested that if BlackRock’s Ethereum ETF (ETHA) exceeds $200 million in trading volume, Ethereum ETFs might outperform his previous estimate that they would capture only 20% of Bitcoin inflows.
Using BlackRock’s ETF as a proxy, $ETHA volume after first hour will be around $50m. If it can pass $200m by EOD it will be outperforming our ‘20% of btc’ estimate (given $IBIT did $1b first day). Looks promising but who knows..
— Eric Balchunas (@EricBalchunas) July 23, 2024
Bitwise CIO Matt Hougan suggests that investors are unlikely to replace Bitcoin with ETH but rather hold both as part of a diversification strategy. He recommended starting with this portfolio: 60% in Bitcoin ETP, 30% in Ethereum ETP, and 10% in Crypto Equities ETP.
In an X post, Balchunas also noted that ETH ETFs significantly outperform other ETFs launched in the past 12 months when excluding Bitcoin ETFs.
I was curious how the Eth ETFs would rank in Day One volume vs all 600 or so new launches in the past 12mo but *excluding* the btc ETFs and $ETHA would be #1 (by a lot), $FETH #2, $ETHW #5 and $ETH 7th, and $ETHV in 13th spot. And $CETH, which was lowest among group, would still… pic.twitter.com/qXJFcuupi5
— Eric Balchunas (@EricBalchunas) July 23, 2024
In May, the Securities and Exchange Commission (SEC) gave preliminary approval for ETF issuers, allowing them to list these funds on exchanges. The impact of ETH ETF performance will also depend on changes in U.S. political and regulatory attitudes toward the crypto industry.
