ETF analyst James Seyffart reported that Ethereum exchange-traded funds (ETFs) attracted $107 million in inflows on their first day.
As anticipated, BlackRock’s iShares Ethereum Trust (ETHA) leads with $258.6 million in inflows. Fidelity’s Ethereum Fund (FETH) follows in second place with $137.9 million.
Ethereum ETFs Debut with Strong Inflows; Grayscale Faces Outflows
The Bitwise Ethereum ETF (ETHW) and Grayscale Ethereum Mini Trust (ETH) attracted $94.3 million and $65.6 million in inflows, respectively. VanEck’s Ethereum ETF (ETHV) also made the top 5, with $44.8 million.
However, Grayscale’s Ethereum Trust (ETHE) experienced significant outflows, totaling $484 million. James Seyffart praised the overall inflows as “very solid” in a social media post. At the time of writing, Ethereum (ETH) is trading at $3,448, according to CoinGecko data.
Ethereum ETFs Exceed $1 Billion in First-Day Trading Volume
Ethereum exchange-traded funds (ETFs) have already surpassed $1 billion in cumulative trading volume on their first day in the US. This figure is approximately one-fifth of the volume recorded by Bitcoin ETFs during their debut in January. Grayscale’s ETHE leads the volume chart with $355 million, followed by Fidelity Ethereum Fund (FETH) with $292 million, and BlackRock’s ETHA with $187 million.
Ethereum, the leading altcoin by market cap, is currently trading at $3,466 on Bitstamp after a 0.9% decline. Despite the initial strong performance of Ethereum ETFs, some market participants are concerned about potential selling pressure due to product outflows. Analysts are closely watching the first-day inflows for insights into demand levels, with stronger-than-expected inflows potentially acting as a bullish catalyst for the market, according to Coinbase researchers.
Ethereum ETFs: Predictions and Industry Reactions
Analysts James Seyffart and Eric Balchunas predict that Ethereum ETFs could attract around $6 billion in inflows during their first year. This upbeat forecast contrasts with JPMorgan’s view, which suggests that Ethereum ETFs might struggle to gain significant demand due to the lack of staking rewards.
Galaxy Digital CEO Mike Novogratz called Ethereum ETFs a “game-changer” for the crypto industry, noting they improve access to Ethereum and offer regulatory clarity by confirming that Ethereum is not classified as a security. BlackRock also highlighted Ethereum’s potential to drive digital transformation across industries.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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