Spot Ethereum ETFs seen with over $1B in trading volume on debut
United States listed spot Ether exchange-traded funds generated around $1.08 billion in cumulative trading volume on its first day of trading — roughly 23% of what the spot Bitcoin ETFs saw on their opening day.
The converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) saw the most volume on July 23 at $458 million and $248.7 million, respectively, according to preliminary data from Bloomberg ETF analyst Eric Balchunas.
The Fidelity Ethereum Fund (FETH), Bitwise Ethereum ETF (ETHW) rounded out the top four with $94.3 million and $63.8 million, while the 21Shares-issued spot Ether ETF came in last, failing to crack the $10 million mark.
Balchunas said the $625 million in volume seen from the “Newborn Eight” products — excluding Grayscale’s ETHE — was “healthy” and expects a “sizeable chunk” of that sum will convert to inflows.
Source: James SeyffartFellow Bloomberg ETF analyst James Seyffart expects the inflows to range somewhere between $125 million and $325 million — but that will depend on how many investors these firms had lined up.
In January, spot Bitcoin ( BTC ) ETFs saw $655.2 million in inflows on its first day of trading, including a $95 million outflow from Grayscale’s converted Bitcoin product.
Related: BlackRock Bitcoin ETF records biggest inflow day since March at $523M
It comes a day after the US securities regulator made effective the final S-1 forms necessary for the products to launch on the Nasdaq, NYSE Arca, and Chicago Board Options Exchange .
Fidelity, 21Shares, Bitwise, Franklin and VanEck have waived fees on their ETFs for a set period or until the products reach a certain amount in net assets.
After that, all spot Ether ( ETH ) ETFs except ETHE will offer a base fee between 0.15% and 0.25%. ETHE’s fee remains at 2.5%.
BlackRock is offering a discounted fee of 0.12% for the first 12 months or until the fund reaches $2.5 billion in net assets, whichever comes first. After that, it will increase to 0.25%.
The Grayscale Ethereum Mini Trust will start at a 0.12% fee and move to 0.25% after 12 months or $2 billion in net assets is reached, while the Invesco Galaxy-issued spot Ether ETF is set at 0.25%.
Source: James SeyffartEther’s is currently trading at $3,470 — hovering between $3,400 and $3,500 on the first trading day.
Magazine: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer, X Hall of Flame
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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