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Published on: Jul 24, 2024
#Crypto 360
As far as the net inflow of spot ether ETFs is concerned, it stood at $106.6 million on 23 July.
• Grayscale’s Ethereum Trust (ETHE) contributed nearly half of the trading volume, with $458 million being traded on the day.
• BlackRock's iShares Ethereum Trust ETF (ETHA) was the next fund with the highest trading volume of 248.7 million.
• 21Shares Core Ethereum ETF (CETH) recorded the lowest trading volume of $8.6 million.
Spot Ethereum exchange-traded funds (ETFs) recorded a trading volume of over $1 billion on their debut in the U.S. market. The figure of $1 billion is barely a quarter of the total trading volume of $4.6 billion that spot Bitcoin ETFs saw on their debut on 11 January.
Image: First day of Ether ETF inflow data, by Bloomberg
It should be noted that trading volume simply means the total amount of trading that took place, including both inflows and outflows. So, did the spot ether ETFs record a positive inflow? Yes.
As far as the net inflow of spot ether ETFs is concerned, it stood at $106.6 million on 23 July. Both BlackRock’s ETHA and Bitwise’s ETHW recorded new inflows of $266 million and $204 million. The worst performer in this case is Grayscale’s ETHE, which recorded a net outflow of $484 million.
The net inflow of $106.6 million for spot ether ETFs on their debut on 11 January is 15% of the corresponding figure of $650 million for spot Bitcoin ETFs on their debut. Even then, Grayscale was the bad apple, as its spot Bitcoin ETF saw an outflow of $95 million.
We need to observe the net inflow for at least a week before we can gauge any trends. Several ETF issuers, such as Fidelity, 21Shares, Bitwise, Franklin, and VanEck, have waived their fees for a set period or a set amount in net assets. Grayscale’s ETHE will offer a base fee of 2.5%, while the rest will offer it within the range of 0.15%- 0.25%.
ETH has been struggling to break free of the price level of $3.5K for quite some time. We can only expect a bullish turn once it crosses the $3,600 mark. We reported in mid-July that the U.S. Securities & Exchange Commission (SEC) asked spot ether ETF issuers to complete formalities and submit fees by 17 July. The funds debuted only around a week later.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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