This
week,
spot
Ethereum
ETFs
(Exchange-Traded
Funds)
were
officially
approved
and
launched,
filling
the
crypto
community
with
excitement
about
the
latest
industry
milestone.
The
ETH-based
investment
products
saw
an
impressive
first
day,
reaching
over
$1
billion
in
volume.
Following
its
second
day
live,
some
experts
shared
that
the
ETFs’
day
two
volume
was
higher
than
expected.
Spot
Ethereum
ETFs
Surpass
Expectations
On
Monday,
the
US
Securities
and
Exchange
Commission
(SEC)
gave
the
final
nod
to
spot
Ethereum
ETFs,
setting
the
launch
date
to
Tuesday,
July
23.
Before
the
launch,
Industry
figures
and
experts
debated
the
expectations
for
the
ETH
ETFs
compared
to
their
Bitcoin
(BTC)
counterparts.
Many
considered
that
the
Ethereum-based
products
would
only
do
about
20%-30%
of
Bitcoin
ETFs.
Katherine
Dowling,
Bitwise’s
CCO,
highlighted
that
the
highly
anticipated
ETFs
were
a
“more
nuance
sell”
than
BTC’s.
This
opinion
has
been
shared
by
others,
including
American
entrepreneur
Anthony
Pompliano.
The
BTC
bull
recently
stated
that
Ethereum’s
story
isn’t
“as
clear”
as
Bitcoin’s
“digital
gold”
narrative.
To
Pompliano,
this
translated
to
a
significant
decrease
in
attention
and
interest
from
traditional
investors
and
the
media.
After
the
launch,
spot
ETH
ETFs
met
experts’
expectations.
The
second-crypto
investment
products
made
about
$1.05
billion
in
volume
on
its
first
day,
accounting
for
24%
of
what
spot
BTC
ETFs
did
on
day
one.
ETH ETFs total volume on day one. Source: James Seyffart on X
According
to
Bloomberg
expert
Eric
Balchunas,
the
new
eight
ETH
ETFs
took
in
$590
million
on
its
first
day,
representing
83%
of
what
the
nine
new
BTC
ETFs
did
on
its
first
day.
This
number
was
a
“huge”
start
for
the
investment
products
and
surpassed
Balchunas
expectations.
Despite
the
massive
$484
million
outflows
from
Grayscale’s
Ethereum
Trust
(ETHE),
the
ETH
ETFs
registered
$107.8
million
in
inflows
on
its
first
day,
led
by
Blackrock’s
iShares
Ethereum
Trust
(ETHA)
and
Bitwise
Ethereum
ETF
(ETHW)
respective
inflows
of
$266.5
million
and
$204
million.
Second-Day
Volume
Surprises,
But
Outflows
Steal
The
Show
On
its
second
day,
Ethereum
ETFs
continued
to
surprise
experts.
Balchunas
pointed
out
that
some
ETFs
did
“about
as
much
or
even
a
little
more
volume”
than
the
first
day.
To
the
expert,
this
performance
suggests
a
good
sign
since
“a
lot
of
times
there’s
a
sizable
dropoff
after
hyped-up
Day
One.”
Bitwises’
president,
Teddy
Fusaro,
shared
on
X
that
by
half
the
second
trading
day,
the
Ethereum
ETFs
had
“traded
about
$852
million
in
value”.
In
comparison,
its
Bitcoin
counterparts
had
traded
about
$1.1
billion.
Fusaro
expressed
surprise
about
the
number.
He
stressed
that
“ETH
ETFs
are
trading
about
75%
of
the
notional
value
of
BTC
ETFs
today,”
which
was
higher
than
expected.
James
Seyffart
shared
a
similar
opinion,
stating
that
he
was
“Genuinely
surprised
by
this.”
Nonetheless,
Day
Two
closed
its
net
flow
on
red
numbers.
According
to
Farside
Investors’
provisional
data,
ETH
ETFs
saw
outflows
worth
around
$133.3
million.
ETHE
registered
$326.9
million
in
outflows,
which
weighted
down
the
positive
net
flows
from
the
rest
of
the
Ethereum
ETFs.
ETH ETFs net flows on July 24. Source: Farside Investors
Per
the
data,
ETHA
and
ETHW
saw
significantly
lower
numbers
on
Wednesday,
attracting
only
$17.4
million
and
$29.6
million
in
net
inflows.
However,
Fidelity’s
FETH,
VanEck’s
ETHV,
and
Grayscale’s
Mini
Trust
increased
their
numbers
on
the
second
day,
with
$74.5
million,
$19.8
million,
and
$45.9
million,
respectively.
Ultimately,
experts
consider
that
Ethereum
ETFs’
launch
was
“very
solid”
despite
registering
a
5%
volume
drop
on
its
second
day.
Compared
to
a
standard
ETF
launch,
the
second
crypto-based
investment
products
have
exceeded
expectations,
ranking
among
the
top
10%
ETF
launches
in
the
last
year.
ETH is trading at $3,173 in the weekly chart. Source: ETHUSDT on TradingView
Featured
Image
from
Unsplash.com,
Chart
from
TradingView.com
Go to Source
Author: Rubmar Garcia
