Ethereum ETFs recorded a net inflow of $106.6 million on their first trading day despite massive outflows from Grayscale’s freshly converted Ethereum Trust.
BlackRock’s iShares Ethereum Trust ETF (ETHA) led with $266.5 million in inflows, followed closely by the Bitwise Ethereum ETF (ETHW) with $204 million in net inflows. The Fidelity Ethereum Fund ETF (FETH) came in third with $71.3 million.
The inflows into the newly launched spot Ethereum ETFs were sufficient to outweigh the outflows from the Grayscale Ethereum Trust (ETHE), which recorded outflows of $484.9 million, amounting to 5 percent of the fund that had $9 billion under management.
ETHE was launched by Grayscale in 2017, providing institutional investors with exposure to Ethereum. However, it imposed a six-month lock-up period for all investments. Its conversion to a spot ETF means that investors can more easily sell their shares, which may explain the high outflows on the first day.
Similar Dynamics
In January, spot Bitcoin ETFs were disrupted by a similar dynamic with the Grayscale Bitcoin Trust, which recorded over $17.5 billion in outflows following the launch of 11 spot ETFs.
Meanwhile, Grayscale’s Ethereum Mini Trust, a spin-off product launched by the asset manager with lower fees, generated $15.2 million in new inflows.
Franklin Templeton’s Franklin Ethereum ETF (EZET) raised $13.2 million, while the 21Shares Core Ethereum ETF (CETH) recorded $7.4 million in inflows.
Overall, Ethereum ETFs generated $1.08 billion in cumulative trading volume on their first trading day, 23 percent of the volume that Bitcoin ETFs achieved on their debut.
The price of Ethereum remained relatively stable throughout yesterday. The current price is $3,457, a decrease of 0.2 percent in the last 24 hours and 0.9 percent in the last seven days, according to CoinGecko data.
