The debut of the first US ETFs investing directly in Ether marked a strong start, with substantial trading volumes on their opening sessions.
Across nine exchange-traded funds, over $1 billion in shares changed hands. While this figure is modest compared to the $4.6 billion traded during the January launch of spot-Bitcoin ETFs, it represents a significant beginning for these new funds. Notably, several of these ETFs are concluding their first day among the top 50 highest-traded US ETF debuts of all time.
BlackRock’s iShares Ethereum Trust ETF (ticker ETHA) reported $248 million in shares traded, positioning it among the highest first-day traded values ever recorded, according to Bloomberg Intelligence. Grayscale’s Ethereum Trust, which transitioned to an ETF, saw around $458 million in trades, making it one of the top 25 debuts. Crypto-native firm Bitwise Asset Management Inc.’s Ethereum fund (ETHW) also experienced solid demand, with turnover surpassing $94 million.
Drew Walsh, Vice President of Research and Operations at Roundhill Financial, noted, “It’s a similar audience for the Ether ETFs and Bitcoin ETFs. It’s not a crypto-native audience. It’s people that are new to the asset class and want exposure to cryptocurrencies.”
Trading volume alone does not reflect investor buying or selling intentions or fund inflows. The precise net flows into or out of these products might not be clear until at least Wednesday due to the settlement process of the trades.
Matt Hougan, Chief Investment Officer at Bitwise, commented during a Bloomberg TV interview, “It’s been an incredible reaction, to be honest. It’s exceeded my expectations.”
The launch of Ether ETFs follows the highly anticipated debut of US spot Bitcoin ETFs in January, which saw significant inflows. Projections for Ether fund inflows vary, with analysts forecasting one-year flows between $4.8 billion and $6.4 billion, according to Wintermute. However, Wintermute also suggests that actual demand might fall short, estimating flows between $3.2 billion and $4 billion. Bloomberg Intelligence projects that Ether ETF flows could reach approximately 20% of those seen with Bitcoin funds.
Christopher Jensen, Head of Digital Assets Research at Franklin Templeton, believes Ether ETF adoption may accelerate as many investors have already engaged with Bitcoin ETFs. He estimates that spot-Ether ETF flows could reach about 30% of those for Bitcoin ETFs, given Bitcoin’s market cap is approximately three times larger than Ether’s.
Citigroup’s Alex Saunders, however, highlights Bitcoin’s first-mover advantage and its clearer use case as “digital gold.” He notes that existing allocations to Bitcoin ETFs may satisfy many investors’ crypto exposure needs, and expects Ether fund flows to be capped between $4.7 billion and $5.4 billion.
Ether’s price remained relatively stable for a third consecutive day, falling less than 1% to $3,481. The Ethereum token has seen a 50% increase in value so far this year.
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