Spot Ethereum Exchange Traded Funds (ETFs) launched for trading by the United States Securities and Exchange Commission on Tuesday recorded a total trading volume of $951 million on the second trading day.
The cumulative trading volume on the second day of trading is a little shy from the debut day which stood at $1.054 billion. The Spot Ethereum ETFs witnessed a net inflow of approximately $107 million on its debut trading day slightly offsetting the massive outflow that was witnessed on Grayscale’s ETF product.
On the second day, Grayscale Ethereum Trust (ETHE) surpassed Blackrock’s iShares Ethereum Trust (ETHA) to lead the pack. Grayscale Ethereum Trust registered a total trading volume of $492 million, accounting for over 52% of the cumulative daily trading volume.
Next in line was BlackRock’s ETHA which registered $256 million in trading volume and Fidelity’s Ethereum Fund which saw a total of $113 million in trading volume.
The Institutional inflow for the spot Ethereum ETFs on the second trading day slightly underperformed its first day of trading which saw the Ethereum ETFs amass a total of $106.7 million in net inflows. The Grayscale Ethereum Trust experienced $484.1 million in net outflows, the only fund with outflows on the debut day.
Bloomberg Intelligence James Seyffart shared his opinion on the performance of the ETFs in its first day of trading explaining that the ETF launch pretty much met his expectations
“If we compare it to a standard ETF launch, it was a smashing success,” Seyffart said.
Various analysts have come out to give their analysis and comparisms in the performance of the spot Ethereum ETFs to that of spot Bitcoin ETFs.
Rennick Palley, a founding partner at VC firm Stratos noted some investors might be looking to diversify from Bitcoin ETFs into Ethereum ETFs. He applauded this as an indication in interest by investors to diversify across crypto assets in ETF form.
Bitwise President Teddy Fusaro noted a trading difference between Ethereum ETFs and Spot Bitcoin ETF.
He took to X page to share his comment on the difference he noted between the two available crypto ETFs at the moment.
He explained that Ethereum ETFs trading about 75% of the notional value of what Bitcoin ETFs were trading on the same day is a lot higher than he expected and is positive news for the Ether ETF.
The Ethereum ETFs have only been trading for three days at the moment.
What to Know
- Spot Ethereum ETFs are the second crypto based ETFs to launch in the United States and according to Bitwise CIO Matt Hougan he expects the Ethereum ETFs to pull in about $15 billion in its first 18 months of trading.
- The Asset managers who issued institutional investors Bitcoin ETFs are equally involved in the Ethereum ETFs business. Some of the Asset managers involved in both ETFs include Blackrock, Fidelity, Grayscale, Franklin Templeton and Invesco Galaxy.
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