US Spot Ethereum ETFs Kick Off with BlackRock Recording Highest Inflows
Tuesday marked a significant milestone for crypto enthusiasts and investors with the launch of US-based spot Ethereum exchange-traded funds (ETFs).
Despite a mixed outcome regarding investment flows, trading activity for the day was strong, exceeding $1 billion in total volume.
Grayscale Ethereum Trust Record Nearly Half a Billion in Outflows
BlackRock’s ETHA led the charge with the highest inflows, securing $266.5 million. Whereas Bitwise’s ETHW recorded the second-highest inflows, gaining around $204 million.
In stark contrast, the Grayscale Ethereum Trust (ETHE) recorded a substantial outflow of $484.1 million. Despite heavy outflows from ETHE, the Grayscale Ethereum Mini Trust (ETH) recorded inflows of just $15.1 million.
Meanwhile, Fidelity’s FETH attracted a noteworthy $71.3 million in inflows, while Franklin Templeton’s EZET garnered $13.2 million. Most of the other ETFs experienced inflows in single digits. The cumulative inflows totaled $106.6 million.
Read more: Ethereum ETF Explained: What It Is and How It Works
| Blackrock | Fidelity | Bitwise | 21 Shares | VanEck | Invesco | Franklin | Grayscale | Grayscale | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| ETHA | FETH | ETHW | CETH | ETHV | QETH | EZET | ETHE | ETH | ||
| July 23, 2024 | 0.25% | 0.25% | 0.20% | 0.21% | 0.20% | 0.25% | 0.19% | 2.50% | 0.15% | |
| Seed | 10.6 | 4.4 | 2.5 | 2.3 | 10.2 | 1.1 | 2.7 | 9,199.3* | 1,022.5* | 10,255 |
| July 23 | 266.5 | 71.3 | 204.0 | 7.5 | 7.6 | 5.5 | 13.2 | (484.1) | 15.1 | 106.6 |
Trading volumes for the day were particularly impressive. ETHA topped the charts, followed closely by Fidelity’s FETH. These numbers are unparalleled when compared to over 600 new ETF launches in the past year, excluding those based on Bitcoin.
“Just another way to illustrate how unusual all this is,” Bloomberg ETF analyst Eric Balchunas said.
Conversely, the price of Ethereum showed minimal fluctuation. It was trading at $3,451, a slight decrease of about 1% from the previous day. Despite significant developments in ETF offerings, the market price of this major digital asset remained relatively unchanged.
Ethereum (ETH) Price Performance. Source: BeInCrypto Edward, a BloFin Research and Options analyst, discussed Ethereum’s market behavior in an interview with BeInCrypto. He noted that Ethereum has been consolidating around the $3,500 mark without showing a clear upward or downward trend.
“This behaviour indicates that the significant negative gamma around $3,500 is one reason for price instability. At the same time, the support levels at around $3,300 strike and resistance levels at around $3,600 strike make breaking out in either direction difficult for the ETH price,” Edward told BeInCrypto.
