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Author: Tom Mitchelhill, CoinTelegraph; Compilation: Whitewater, Bitchain Vision
The U.S. Ethereum Exchange Trading Fund (ETF) net inflows of $106.6 million on the first day of trading — despite a large outflow of funds from Grayscale’s just converted Ethereum Trust Fund.
BlackRock and Bitwise lead the way, with BlackRock’s iShares ETF (ETHA) net inflows of $266.5 million and Bitwise’s Ethereum ETF (ETHW) net inflows of $204 million.
Fidelity’s Ethereum Fund (FETH) ranked third with a net inflow of $71.3 million.
The Ethereum ETF attracted $106.6 million inflows on its first day of listing.Source: FarSide
The inflow of the “new” Ethereum spot fund is enough to compensate for the losses of the Grayscale Ethereum Trust (ETHE), which flowed out of $484.9 million on the same day.
ETHE was launched in 2017 by Grayscale and allows institutional investors to buy ETH.However, it imposed a six-month lock-up period on all investments.
Converting to spot ETFs means investors can now sell their shares more easily, which explains the high outflows on the first day.
Spot Bitcoin ETFs encountered a similar situation in January, with Grayscale’s Bitcoin Trust Fund (GBTC) outflowing more than $17.5 billion after launching 11 spot BTC funds.
Meanwhile, Grayscale’s Ethereum Mini Trust (a derivative that the asset manager launched at a lower fee) brought in $15.2 million in new capital inflows.
Franklin Templeton Fund (EZET) had a net inflow of $13.2 million, while 21Shares’ core Ethereum ETF (CETH) flowed $7.4 million.
Overall, the spot ETH fund generated $1.08 billion in cumulative trading volume on the first day of trading, accounting for 23% of the spot Bitcoin ETF’s debut trading volume.
Source: James Seyffart
The price of ETH fell slightly on the day.
According to TradingView, ETH was trading at $3,451 as of this article, down 1.4% in the past 24 hours and down 1.5% this week.
Ethereum prices fell during the spot ETF’s debut.Source: TradingView
The Ethereum ETF received final approval from the U.S. Securities and Exchange Commission on July 22 and began trading in the U.S. on July 23.
