Experts react to spot Ethereum ETFs debut, compare it to Bitcoin ETF launch

Ethereum ETH -0.085% made a big splash on Wall Street Tuesday, with spot ether exchange-traded funds generating over $1 billion in volume on their first day of trading, according to Yahoo Finance data compiled by The Block Pro Research.

The Grayscale Ethereum Trust (ticker: ETHE) accounted for nearly half of the total volume, followed by BlackRock's iShare Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH).

“I think they pretty much met expectations for me,” Bloomberg Intelligence’s James Seyffart told The Block. “They traded about 24% of the day 1 volumes for bitcoin ETFs, and they took in 16.5% of the flows compared to Bitcoin ETFs’ day 1. All around, I think it’s a very solid day.” 

Spot Ethereum ETFs recorded $106.7 million in net inflows . The aforementioned Grayscale Ethereum Trust experienced $484.1 million in net outflows, the only fund with outflows. Blackrock’s ETHA led with $266.55 million in net inflows.

“[I]f we compare it to a standard ETF launch, it was a smashing success,” Seyffart said. “The problem is we are comparing it to the biggest ETF launch of all time in the Bitcoin ETFs.”

Spot bitcoin ETFs in the U.S. saw $77.97 million flow out of the funds on Tuesday, ending a 12-day inflow streak, SosoValue data showed.

SosoValue data also showed that the spot Ethereum ETFs have amassed over $10 billion in assets under management. This is primarily due to substantial seed funding from the conversion of Grayscale's previously existing Ethereum Trust to an ETF and its mini-offshoot.

“Bottom line: while this is a marathon, not a sprint, demand for ETH surpassed expectations on day 1,” Bitwise Senior Investment Strategist Juan Leon said in a post on X . “Great setup for the road ahead.”

Bloomberg senior ETF Analyst Eric Balchunas illustrated this point in a post on X :

The approval and launch of ETH ETFs show that the SEC doesn’t define ETH as a security, according to Lennix Lai, Global Chief Commercial Officer at OKX.

“The launch of ETH ETFs means more capital inflow to the ETH ecosystem, especially from institutional investors,” Lai said in a statement.

The price of ether is up 0.51% over the last 24 hours to $3,432, according to T he Block’s ETH price page , and there was $16.9 billion of trading volume during that time.