Ethereum ETFs Debut With $1 Billion Trading Volume
24 Jul, 2024 ● Kripto novosti
United States-listed spot Ethereum exchange-traded funds (ETFs) achieved approximately $1.08 billion in cumulative trading volume on their first day of trading, which is about 23% of the volume seen by spot Bitcoin ETFs on their debut day.
The converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) recorded the highest volumes on July 23, with $458 million and $248.7 million, respectively, according to preliminary data from Bloomberg ETF analyst Eric Balchunas.
The Fidelity Ethereum Fund (FETH) and Bitwise Ethereum ETF (ETHW) followed with $137.2 million and $94.3 million, respectively.
The 21Shares-issued spot Ether ETF came in last, not reaching the $10 million mark.
Balchunas described the $625 million in volume from the "Newborn Eight" products — excluding Grayscale’s ETHE — as “healthy” and anticipates a “sizeable chunk” of that volume to convert into inflows.
Bloomberg ETF analyst James Seyffart predicts the inflows will range between $125 million and $325 million, depending on the number of investors these firms attract.
In January, spot Bitcoin ETFs experienced $655.2 million in inflows on their first trading day, which included a $95 million outflow from Grayscale’s converted Bitcoin ETF.
This development followed the U.S. securities regulator making the final S-1 forms effective, allowing the products to launch on the Nasdaq, NYSE Arca, and Chicago Board Options Exchange.
Fidelity, 21Shares, Bitwise, Franklin, and VanEck have waived fees on their ETFs for a limited period or until the products reach a specified amount in net assets.
After that period, all spot Ether ETFs, except for ETHE, will charge a base fee between 0.15% and 0.25%. ETHE’s fee remains at 2.5%.
BlackRock offers a discounted fee of 0.12% for the first 12 months or until the fund reaches $2.5 billion in net assets, whichever comes first. After that, the fee will increase to 0.25%.
The Grayscale Ethereum Mini Trust will start with a 0.12% fee, which will increase to 0.25% after 12 months or once it reaches $2 billion in net assets, while the Invesco Galaxy-issued spot Ether ETF is set at 0.25%.
At the time of publication, Ether trades at $3,470, fluctuating between $3,400 and $3,500 on the first trading day for the spot ETFs.
Sources:
https://cointelegraph.com/news/spot-ethereum-etfs-surpass-1-billion-trading-volume-on-day-1
https://x.com/EricBalchunas/status/1815848912185377005
