thecryptobasic.com
The launch of Ethereum ETFs achieved a milestone of over $1.1 billion in trading volume on their first day.
Ethereum ETFs have recently significantly impacted the market, with $10.2 billion in assets across nine ETFs. On their debut day, trading volumes exceeded $1.1 billion, showcasing strong investor interest.
Day 1 Recap: Ethereum ETFs now have $10.2 Billion in assets across 9 ETFs. Volumes on day 1 were over $1.1 billion for the group. Total net flows were +$107 million after a accounting for the massive -$484 million that came out of $ETHE. Very solid first day https://t.co/Cl92SkXJP9 pic.twitter.com/b7ZS2sGKs0
— James Seyffart (@JSeyff) July 24, 2024
Inflows and Trading Volumes
Fidelity (FETH) had an inflow of $71.3 million, while Grayscale ETHE had an outflow of $484 million. BlackRock and Bitwise ETFs led the way with $266.5 million and $204 million in inflows, respectively.
UPDATE: First full day of flows for the ETHness stakes are in. The Ethereum ETFs took in $107 million. @BlackRock's $ETHA lead the way with $266.5 million followed by @BitwiseInvest's $ETHW with $204 million. Very solid first day pic.twitter.com/j28vIwVWvR
— James Seyffart (@JSeyff) July 24, 2024
Bloomberg analyst Eric Balchunas suggested that if BlackRock’s Ethereum ETF (ETHA) exceeds $200 million in trading volume, Ethereum ETFs might outperform his previous estimate that they would capture only 20% of Bitcoin inflows.
Using BlackRock's ETF as a proxy, $ETHA volume after first hour will be around $50m. If it can pass $200m by EOD it will be outperforming our '20% of btc' estimate (given $IBIT did $1b first day). Looks promising but who knows..
— Eric Balchunas (@EricBalchunas) July 23, 2024
Bitwise CIO Matt Hougan suggests that investors are unlikely to replace Bitcoin with $ETH but rather hold both as part of a diversification strategy. He recommended starting with this portfolio: 60% in Bitcoin ETP, 30% in Ethereum ETP, and 10% in Crypto Equities ETP.
In an X post, Balchunas also noted that $ETH ETFs significantly outperform other ETFs launched in the past 12 months when excluding Bitcoin ETFs.
I was curious how the Eth ETFs would rank in Day One volume vs all 600 or so new launches in the past 12mo but *excluding* the btc ETFs and $ETHA would be #1 (by a lot), $FETH #2, $ETHW #5 and $ETH 7th, and $ETHV in 13th spot. And $CETH, which was lowest among group, would still… pic.twitter.com/qXJFcuupi5
— Eric Balchunas (@EricBalchunas) July 23, 2024
In May, the Securities and Exchange Commission (SEC) gave preliminary approval for ETF issuers, allowing them to list these funds on exchanges. The impact of $ETH ETF performance will also depend on changes in U.S. political and regulatory attitudes toward the crypto industry.