Spot Ethereum ETFs post $107MIllion net inflows on the first day
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Spot Ethereum ETFs post $107MIllion net inflows on the first day

Nxtgen Virtue , , , ,

Grayscale’s Ethereum Trust bled $485 million from its newly launched spot ETH funds, weighing down the newly launched funds.

On their first trading day, US Ether exchange-traded funds (ETFs) posted a net inflow of $106.6 million despite massive outflows from Grayscale’s newly converted Ethereum Trust.

BlackRock and Bitwise ETFs led the way, with BlackRock’s iShares ETF (ETHA) receiving $266.5 million and Bitwise’s Ethereum ETF receiving $204 million in net inflows.

Fidelity’s Ethereum Fund (FETH) finished third, with $71.3 million.

The inflows into the “newborn” spot Ether funds were sufficient to offset haemorrhage from Greyscale Ethereum Trust (ETHE), which outflowed $484.9 million on the day, accounting for 5% of the once $9 billion fund.

Greyscale created ETHE in 2017, which allows institutional investors to acquire ETH. However, it required a six-month lock-up term for all investments.

The switch to a spot ETF allows investors to sell their shares more easily, which may explain the large day-one withdrawals.

In January, spot Bitcoin ETFs had a similar dynamic to Grayscale’s Bitcoin Trust (GBTC), which saw approximately $17.5 billion in outflows following the introduction of the 11 spot Bitcoin funds.

Meanwhile, Grayscale’s Ethereum Mini Trust, a spinoff product established by the asset manager with cheaper fees, attracted $15.2 million in new inflows.

Franklin Templeton’s fund (EZET) generated $13.2 million, while 21Shares’ Core Ethereum ETF (CETH) received $7.4 million in inflows.

Overall, spot ETH funds achieved $1.08 billion in cumulative trading volume on their first day of trading, accounting for 23% of the volume seen by spot Bitcoin ETFs on their debut.

The price of Ethereum fell marginally throughout the day. At the time of publication, ETH was trading at $3,451, down 1.4% in the last 24 hours and 1.5% for the week, according to TradingView statistics. The Ether ETFs gained final approval from the SEC on July 22 and began trading in the United States on July 23.

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