These are the consequences of the first days of trading of the Ethereum spot ETFs

While we still have a long way to go in 2024, this year has already been quite eventful for the cryptocurrency industry and not just bitcoin.

The second-largest digital asset also received a large dose of validation earlier this year, when the U.S. Securities and Exchange Commission gave the green light to nearly ten exchange-traded funds that track its performance. However, the first few days of trading have been rather disappointing.

eth ETFs were initially given the green light a few months ago, but due to some regulatory formalities that needed to be aligned, they were finally launched on US exchanges on July 23.

The first day of trading saw substantial volumes and $106.6 million in total inflows, despite $484.1 million flowing out of Grayscale’s converted fund (ETHE). This is because BlackRock’s ETHA (with $266.5 million) and Bitwise’s ETHW (with $204 million), among others, managed to offset Grayscale’s losses.

However, these positive flows were short-lived and the situation changed over the next three days. FarSide data shows that while Grayscale’s ETHE continued to see substantial outflows ($326.9 million on July 24, $346.2 million on July 25, and $356.3 million on July 26), the remaining ETFs’ flows failed to catch up.

In total, the outflows of funds in these days were $133.3 million, $152.4 million and $162.7 million respectively. What is particularly worrying is that the funds withdrawn are actually increasing.

Bloomberg ETF specialist Eric Balchunas acknowledged a tough first few days for all ethereum spot ETFs, but saw some silver linings in the performance of the so-called “new eight” products — all recently launched ETFs in addition to the Grayscale convert.

<blockquote class="twitter-tweet”>

The 'New Eight' Ether ETFs are not as strong as the 'New Nine' bitcoin ETFs in offsetting Grayscale's outflows, but the good news is that their inflows/volume are still very healthy and the intensity of the twitter.com/search?q=%24ETHE&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$eth The unlock will turn off sooner than it did. twitter.com/search?q=%24GBTC&src=ctag&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>$GBTC = the outlook is good, but the next… https://t.co/DnOsKsouzP

— Eric Balchunas (@EricBalchunas) twitter.com/EricBalchunas/status/1816817278865838408?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>July 26, 2024

The silver lining for eth is that it managed to recover most of the losses induced earlier this week, when it fell from $3,500 to $3,000 within hours amid ETF outflows. As of now, ether is trading near $3,300.

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