ETH ETFs See Over $1 Billion Trading Volume on Launch Day

Investors were enthusiastic on the first day of trading in the newly launched Ether exchange-traded funds, trading more than $1 billion worth of shares.

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

The top issuers that entered were BlackRock and Bitwise ETFs. BlackRock’s iShares ETF (ETHA) topped the charts with $266.5 million in net inflows, closely followed by Bitwise’s ethereum ETF (ETHW), which captured $204 million.

Fidelity’s ethereum Fund (FETH) also generated substantial interest, accumulating $71.3 million.

In contrast, Grayscale’s ethereum Trust (ETHE) saw significant outflows, losing $484.9 million, which was 5% of its previous valuation of $9 billion. ETHE, which was originally launched in 2017, allowed institutional investors to purchase eth with a six-month lock-up period.

The shift to a spot ETF format has eased the process of selling shares, contributing to the significant outflows seen on launch day.

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

Despite strong trading volume, which reached $1.077 billion, it fell short of the levels seen during the launch of bitcoin spot ETFs in January, which raised five times that amount.

The price of Ether (eth), which ranks as the world’s second-largest cryptocurrency, experienced a drop on July 23, affecting the performance of these new ETFs. At market close, Ether was trading unchanged at $3,486.75.

The introduction of these ETFs marks a significant step forward in the cryptocurrency industry’s ongoing efforts to get Ether classified as a commodity rather than a security.

While the Securities and Exchange Commission has not definitively classified Ether, filing documents 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 pivotal moment for the digital asset industry, noting that trading had proceeded as expected and emphasizing the importance of ethereum’s long-term potential.

“The demand is there, and now US investors can gain market exposure thanks to the innovative power of the ethereum blockchain through ETF wrapping on a regulated exchange,” Snyder told crypto.news.

He further noted that this development is positive for both professional and retail investors and will help ethereum continue to play an important role in the future of Internet and technology investments.