jakiro
Author: Jack Inabinet, Bankless; Compilation: Baishui, Bitchain Vision
The spot Ethereum ETF has completed a whole day of trading, which makes everyone wonder: How are these products performing?
While many were disappointed that ETH prices were quite stagnant on the launch day, trading range was relatively narrow, with a volatility of only 5% and almost flat at the close, the launch of these products could have been worse by all aspects.
Bitcoin plummeted 6% after its ETF launch, hitting a cyclical high, with holders suffering a huge 10% loss the next day.
On the first day of trading, spot ETH ETFs traded in over $1 billion, with the newly launched non-ETHE fund ranked first among new ETFs in the past 12 months (excluding very successful BTC ETFs).
Although Grayscale’s ETHE flowed out $470 million yesterday, five times the time it was allowed to redeem after converting to spot ETFs on January 11, GBTC’s continued discount on the first day initially limited redemption activity.
Excluding a large amount of ETHE outflows, the newly launched spot ETH ETF product received $484 million inflows, which may indicate that investors have too much demand for ETH.
While many ETHE redemptions may be recycled into alternatives with no impact on net traffic, this is equivalent to 79% of the inflows received when the newly launched spot BTC ETF debuted, a achievement that many consider impressiveDeep, because ETH only owns one-third of BTC’s market capitalization.
The first day of capital inflows are undoubtedly encouraging for spot ETH ETFs, but their launch is just a milestone in the marathon journey of Ethereum to replace the traditional financial system.
With the world’s largest asset managers now having a direct motivation to promote Ethereum investment, one hopes that mainstream will eventually understand the benefits of permissionless blockchains.
Now,It remains to be seen whether the new types of investors ETFs are designed to attract can actually be translated into on-chain believers; in this case, the subsequent inflow of funds could push ETH prices (and adoption rates) into historyNew high.
