Examination of the Debut and Performance of US Spot Ether Exchange-Traded Funds (ETFs)
The recently launched spot Ether exchange-traded funds (ETFs) in the United States have made an impressive entrance, garnering positive net flows on their first trading day despite notable outflows from Grayscale’s Ethereum Trust.
Overview
Data from SoSoValue released on July 24, 2024, reveals that the US ETH ETFs witnessed net inflows amounting to $106.6 million into their portfolios.
Inflow Details
- BlackRock’s iShares Ethereum Trust ETF (ETFA) emerged as the top performer with the highest inflow of $266.5 million.
- Bitwise Ethereum ETF (ETHW) followed closely with inflows of $206 million, while Fidelity Ethereum Fund ETF (FETH) secured the third position with inflows of $71.3 million.
- Other funds, including Franklin Templeton’s $EZET ($13.2 million), VanEck Ethereum ETF ($ETHV) ($7.6 million), 21 Shares’ $CETH ($7.47 million), and Invesco’s $QETH ($5.5 million), also experienced positive inflows.
Offsetting Outflows
These inflows managed to counterbalance the $484.11 million outflow from the Grayscale Ethereum Trust ($ETHE). The spot Ether funds registered a total traded value of $1.11 billion on their first day, with total net assets under management reaching $10.24 billion, marking a 2.45% increase from pre-launch values.
Regulatory Progress
This development comes on the heels of the SEC's approval of 11 spot Bitcoin ETFs earlier this year, setting the stage for the launch of additional cryptocurrency asset funds, including those centered on Ethereum and Solana.
SEC Announcement
The approval of spot Ethereum ETFs was announced on July 22 by Bloomberg senior analyst James Seyffart, following the SEC's approval of multiple 19b-4 filings on May 23. Bitwise’s chief compliance officer, Katherine Dowling, had previously hinted at the impending launch earlier in the same month.
Investor Response
The favorable start for these Ethereum ETFs indicates a growing interest among investors in regulated crypto investment products, potentially opening avenues for further expansion in the crypto ETF market.
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