cryptonewsland.com
- Nine new Ethereum ETFs reached $1.1B in trading volume on day one, led by Grayscale’s Ethereum Trust at $461M.
- Ethereum ETFs’ debut volume was strong but lower than Bitcoin ETFs, which hit $4.6B on their first day in January.
- Analysts predict daily Ethereum ETF flows between $125M and $325M, signaling high market interest and potential inflows.
Ethereum ETFs had a good debut day into the market, reaching over $1 billion in trading volume on their first day. This is a positive for these financial products, which were approved by the Securities and Exchange Commission (SEC) in May.
JUST IN – Ethereum ETF trading volume hits $1 billion! pic.twitter.com/drWOUoWUG7
— Altcoin Daily (@AltcoinDailyio) July 23, 2024
Trading Volume Highlights
Nine newly launched Ethereum ETFs collectively saw approximately $1.1 billion in trading volume. The leading performer was Grayscale’s Ethereum Trust (ETHE), with $461 million in shares traded. BlackRock’s iShares Ether Trust (ETHA) followed with $244.7 million, and Fidelity’s Ethereum Fund (FETH) managed $138.5 million.
Other funds, such as Bitwise’s Ethereum Fund (ETHW) and VanEck, saw volumes of around $100 million and $45 million, respectively. Smaller volumes were observed in products from Franklin Templeton, Invesco, and 21 Shares.
First day of the ETHness stakes done. The group's volume was just shy of $1.1 billion. My *prediction* on flows for the day is anywhere from $125 million to $325 million but will depend on how many investors these firms had lined up. We'll know some official flows in a few hours https://t.co/p6Wjty8VyY pic.twitter.com/1gYYrU1CW1
— James Seyffart (@JSeyff) July 23, 2024
Comparison to Bitcoin ETFs
While impressive, the debut of Ethereum ETFs did not reach the heights of the Bitcoin ETFs launched in January, which harmassed over $4.6 billion in first-day trading across 10 funds. Nonetheless, Ethereum ETFs’ initial performance has been deemed strong by market analysts.
Market Analysis and Predictions
At press time, Ethereum was trading at $3,444.90 and is down by 0.98% in the past 24 hours. Bitcoin experienced a similar beginning after its ETF launch, seeing strong trading activity without an immediate price surge.
It took several weeks for Bitcoin to begin its rise, and over a month to hit a new all-time high. If Ethereum follows this pattern set by Bitcoin, August might be a dominant period for Ether and its ETFs.
Crypto analyst Michaël van de Poppe on X pointed out that the high trading volume could indicate significant market interest and potential inflows. He noted, “If Ethereum hits $1B of volume on the first day and we assume that 20% is net inflow, it would mean there’s $200 million of new inflow. This surpasses the $160 million worth of ETH issued this year, suggesting high demand.”
Bloomberg ETF analyst James Seyffart predicted daily flows to range between $125 million and $325 million, depending on pre-arranged investments by firms.
Future Prospects
The successful launch of Ethereum ETFs could signal a broader acceptance and adoption of cryptocurrency-related financial products. Although the trading volumes were lower than those seen with Bitcoin ETFs, the enthusiasm around Ethereum ETFs suggests a growing interest in diversified crypto investments.
The first day of trading sets a promising start for the future of Ethereum ETFs. As these products get more popular, they could play a major role in shaping the crypto market.