Spot Ethereum ETF has marked a significant milestone on their first day of trading. With a net inflow of $106 million, Spot Ethereum ETF is moving forward positively in the crypto world. This impressive start occurred despite the substantial outflows from Grayscale’s new converted Ethereum fund.
Blackrock and Bitwise ETF is leading the charge for example- BlackRock iShare ETF (ETHA) achieved a remarkable $266.5 million in net inflows, while Bitwise Ethereum ETF (ETHW) followed closely with $204 million, Also Fidelity’s Ethereum Fund (FETH) secured the third spot with $71.3 million in net inflows.
The Greyscale Controversy
The influx into these new spot Ether funds was sufficient to counterbalance the $484.9 million outflow from Grayscale Ethereum Trust (ETHE), which represented 5% of the fund that once held $9 billion. Grayscale’s conversion to a spot ETF has allowed investors to sell their shares more easily, likely contributing to the high day-one outflows.
This dynamic mirrors the January launch of spot Bitcoin ETFs, which saw Grayscale’s Bitcoin Trust (GBTC) experience over $17.5 billion in outflows following the introduction of 11 spot BTC funds.
Grayscale’s Ethereum Mini Trust, a lower-fee spinoff product, generated $15.2 million in new inflows, Franklin Templeton’s fund (EZET) and 21Shares’ Core Ethereum ETF (CETH) also saw significant activity, with $13.2 million and $7.4 million in inflows, respectively.
Spot Ethereum ETF: What the Future Holds
On their first day, spot Ethereum ETF funds saw a total trading volume of $1.08 billion, which is 23% of what spot Bitcoin ETFs achieved on their debut.
Despite the strong inflows, the price of Ether (ETH) dropped slightly. It was trading at $3,451, down 1.4% in the last 24 hours and 1.5% over the week, according to TradingView.
These ETFs were approved by the SEC on July 22 and started trading on July 23. The market is now watching to see how these new funds will perform in the coming days and weeks
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