Ether ETFs Debut with $1.08B in Trading Volume, Attracts $106M in Net Inflows

The recent launch of Ether spot Exchange-traded funds (ETFs) is a moment of celebration for the crypto community. These products have generated around $1.08 billion in cumulative trading volume on their first day. This impressive figure, though about 23% of what spot Bitcoin ETFs saw on their first day, signals a promising future for Ether ETFs.

Big Trading Volumes for Ether ETFs

The converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) led the pack with big volumes. ETHE recorded $458 million, while ETHA saw $248.7 million in trading, according to preliminary data from Bloomberg ETF analyst Eric Balchunas. 

Following them were the Fidelity Ethereum Fund (FETH) with $137.2 million and the Bitwise Ethereum ETF (ETHW) with $94.3 million. However, the 21Shares-issued spot Ether ETF attracted less than $10 million in trading volumes.

Calculating closely, the  “Newborn Eight” products, excluding ETHE attracted $625 million in volume. Balchunas finds this “healthy” and expects a major portion of this volume to convert to inflows.

$106.6M in Net Inflows

As per the latest data, these investment products have recorded a net inflow of $106.6 million on their launch day. This figure was recorded even amid the Grayscale’s ETHE massive outflows of $484.9 million. In particular, BlackRock’s ETHA posted $266.5 million while Bitwise’s ETHW brought $204 million in net inflows. Fidelity’s FETH came in third with $71.3 million.

The launch of these ETFs followed the Securities and Exchange Commission’s (SEC) approval of the final S-1 forms. This allowed the products to launch on the Nasdaq, NYSE Arca, and CBOE. 

Many issuers, including Fidelity, 21Shares, Franklin, and VanEck, have taken steps to attract investors by waiving fees on their ETFs for an initial period or until the products accumulate a specific amount in net assets. Post this period, most spot Ether ETFs will offer a base fee between 0.15% and 0.25%, except for Grayscale’s ETHE, which maintains a higher fee of 2.5%.

Bitwise has also announced to direct 10% of its ETF profits to fuel open-source innovation on Ethereum.

Interestingly, spot Bitcoin ETFs saw $655.2 million in inflows on their first day, which included a notable $95 million outflow from Grayscale’s converted Bitcoin product.