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Spot Ether ETFs Net $107M Despite Grayscale Withdrawals

Spot Ether ETFs debut strong with $107M inflows, overcoming significant outflows from Grayscale's Ethereum Trust. Key players like BlackRock and Bitwise lead the charge, while ETH prices face minor dips.

2 min 9 secJuly 24, 2024
Spot Ether ETFs Net $107M Despite Grayscale Withdrawals

The newly launched spot Ether ETFs have made an impressive debut. They posted net inflows of $106.6 million on their first trading day. This comes despite substantial outflows from Grayscale's freshly-converted Ethereum Trust which saw $485 million leave fund. How did the spot Ether ETFs manage to perform so well in such a challenging environment?

 

Leading the charge was BlackRock’s iShares Ethereum Trust ETF (ETHA). It attracted $266.5 million in inflows. Close on its heels, the Bitwise Ethereum ETF (ETHW) reported net inflows of $204 million. The Fidelity Ethereum Fund ETF (FETH) followed with $71.3 million.

 

 

These inflows to the newly launched spot Ether ETFs were enough to counterbalance the significant $484.9 million outflows from Grayscale's Ethereum Trust (ETHE). It originally launched in 2017. Grayscale's Ethereum Trust allowed institutional investors to buy ETH but imposed a six-month lock-up period on all investments. With its recent conversion to a spot ETF investors now have more flexibility to sell their shares. This potentially explains the high day-one outflows.

 

Interestingly this dynamic mirrors what happened in January with the launch of spot Bitcoin ETFs. The Grayscale Bitcoin Trust saw over $17.5 billion in outflows following the launch of 11 spot BTC ETFs. Despite these outflows, Grayscale’s Ethereum Mini Trust spinoff with lower fees, managed to generate $15.2 million in new inflows.

 

 

Other players also saw positive activity. Franklin Templeton’s Franklin Ethereum ETF (EZET) netted $13.2 million. Meanwhile, 21Shares’ Core Ethereum ETF (CETH) saw $7.4 million in inflows. In total, spot ETH ETFs generated $1.08 billion in cumulative trading volume on their first day. This figure is 23% of Bitcoin ETFs' volume on their debut.

 

 

ETH prices, however, took a slight dip. At the time of publication, ETH was trading at $3451. This represented a decline of 1.4% in the last 24 hours and 1.5% over the past seven days, according to TradingView data. Spot Ether ETFs received final approval from the SEC on July 22 and began trading in the United States on July 23. Can these ETFs sustain their strong start amidst the shifting dynamics of the cryptocurrency market? Only time will tell.

 

Conclusive Summary: Despite substantial outflows from Grayscale's Ethereum Trust. Newly launched spot Ether ETFs demonstrated robust performance with $107 million in net inflows on their first day. Major players like BlackRock and Bitwise led the charge. ETH prices saw minor dips.

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