Here’s How Ether ETFs Performed on Their First Day of Trading

• The numbers are in from the first day of ether ETF trading.
• For many analysts, the newborn eight put on a good showing.
• Ether’s price remains relatively flat.

In recent weeks, the crypto industry has been rife with speculation about how spot ether ETFs will perform and how this performance will affect price. On Tuesday, July 23, these products finally went live for trading, so how did they do?

Ether ETFs First Day by the Numbers

The numbers are in from the first day of ether ETF trading. Per data shared by Senior Bloomberg ETF analyst James Seyffart, spot ether ETFs recorded volumes of over $1.1 billion and net inflows of about $107 million. For context, spot Bitcoin ETFs saw volumes exceeding $4 billion and about $655 million in net inflows on their first day of trading.

As anticipated, Grayscale’s converted ETHE offering made up a chunk of the spot ether ETF volume with about $470 million as investors rushed to dump their shares amid ten times higher management fees than the competition, leading to a staggering $484 million in outflows. These outflows were, however, largely absorbed by top performers like BlackRock’s ETHA and Bitwise’s ETHW, which recorded net inflows of $266.5 million and $204 million, respectively in net inflows.

Interestingly, Grayscale’s mini ether ETF with the coveted ETH ticker failed to perform as well as many had hoped. Boasting the lowest fees of any ether ETF, analysts had tipped to give big-name issuers like BlackRock a run for their money. This would, however, not be the case, as Grayscale’s ETH only saw about $15 million in net inflows.

Bullish for Ethereum?

For many analysts, the newborn eight Ethereum ETFs put on a good first-day showing. Reacting to the numbers, Bloomberg‘s James Seyffart asserted that it was a “very solid first day.” Expressing similar sentiments, The ETF Store President Nate Geraci, who has long argued that Ethereum ETFs would meet good demand, sarcastically quipped , “‘No demand.’”

Beyond the fact that the newborn Ethereum ETFs were able to absorb the outflows from Grayscale’s ETHE, the net inflows seen by the ETFs represent a significant chunk of the ETH supply increase so far this year. Per Etherscan data , since January 1, 2024, the ETH supply has grown by about 50,000 ETH, worth about $173.4 million. In a single word, MN Trading Consultancy founder Michael van de Poppe described the feat as “bullish.”

Despite these sentiments, ETH’s price has remained largely flat, trading at $3,460 per CoinMarketCap data at the time of writing, representing a 1.6% decline in the past 24 hours. The lackluster price action comes amid a lack of significant fresh capital, with Grayscale’s ETHE funds being spread across other products.

On the Flipside 

• Some initial inflows to Ethereum ETFs are likely coming from outflows from spot Bitcoin ETFs as investors look to diversify their crypto exposure. Bloomberg Senior ETF Analyst Eric Balchunas hinted at this by highlighting the abnormally high outflows from Bitwise’s spot Bitcoin ETF.
• The outflows from Grayscale’s ETHE offering were higher than analysts like Balchunas expected. Should ETHE outflows continue simultaneously, the newborn eight ETFs may face a significantly uphill task.

Why This Matters

Ahead of the ether ETF launch, several analysts had warned that the launch may not be as big as people anticipated. However, ether ETFs may beat expectations if the results from the first day are any indication.

Read this for more on spot ether ETFs:
Bitwise Ethereum ETF Pushes to Transparency, Publishes On-Chain Addresses

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