Spot Ethereum ETF trading volume cools in third day, falls under $900 million

Spot Ethereum ETH -7.64% ETFs generated strong trading volume on their third day on the market, but demand is cooling off after their hot start . 

The cumulative trading volume among the funds on Thursday was about $850 million, according to Yahoo Finance data compiled by The Block Pro Research. Trading volume eclipsed $1.05 billion in Tuesday's session and over $950 million Wednesday.

The ETFs recorded $133.16 million in net outflows on Wednesday, a reversal from Tuesday's $106.78 million in net inflows . The Grayscale Ethereum Trust (ETHE) saw $326.86 million in net outflows — yet again, the only ether fund to log outflows, according to SosoValue.

Ahead of Thursday's trading session, the price of ether had dropped more than 7% overnight .

"The pronounced pullback… is not only unsurprising but expected," Keyrock's Justin d'Anethan told The Block earlier Thursday. "The market's memory is short, but while the spot bitcoin ETFs did push prices higher, in the very beginning, crypto markets went down."

At publication time, ether was still down nearly 8% to $3,102, according to The Block's ETH price page . Over the last 24 hours, it saw $25.9 billion of trading volume.

"After ETPs launch, BTC price was initially depressed from a combination of 'sell the news' and large outflows from GBTC," Bitwise Investment Strategist Juan Leon said in a post on X . "Subsequently, inflows into other ETPs ramped up and price took off."

The strategist noted that after two days of trading, ETH is down nearly 10%. Similarly to the BTC case, there have been large outflows from The Grayscale Ethereum Trust (ETHE) that could continue for some time and ether's price had run up in the two weeks leading up to the spot ETFs launch.

"Will it play out similarly for ETH? Can't know for sure, but institutional demand for crypto assets is growing, and ETH has now joined BTC as the only two crypto assets with an ETP wrapper," Leon said.