Bloomberg ETF expert Eric Balchunas said the $625 million in trading activity, excluding Grayscale’s ETHE, was “healthy,” and he expects a “sizeable chunk” of that amount to be converted into inflows.
On their first trading day, spot Ether exchange-traded funds with a U.S. listing generated a combined trading volume of over $1.08 billion, which was roughly 23% of the trading volume of spot Bitcoin ETFs on their first day of trading.
On July 23, the converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) saw the most volume, with $458 million and $248.7 million, respectively, according to preliminary data from Bloomberg ETF analyst Eric Balchunas.
The Fidelity Ethereum Fund (FETH) held $137.2 million. The Bitwise Ethereum ETF (ETHW) had $94.3 million. They rounded out the top four. The 21Shares Spot Ether ETF failed to raise $10 million.
Excluding Grayscale’s ETHE, Balchunas said the $625 million in revenue from the “newborn eight” products was “healthy” and predicted that a “large portion” of that amount would translate into inflows.
Source: James Seyffart
James Seifert, another Bloomberg ETF analyst, estimates the investment to be between $125 million and $325 million. The actual figure will depend on how many investors these firms have attracted.
The spot bitcoin ETF recorded inflows of $655.2 million on its first day of trading in January. Grayscale’s converted bitcoin product saw outflows of $95 million during the same period.
It comes just one day after the US Securities and Exchange Commission approved the final S-1 paperwork required for the products to be listed 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 time or until the products reach a particular net asset value.
All spot Ether ETFs, except ETHE, will henceforth incur a flat fee of 0.15% to 0.25%. ETHE still costs 2.5%.
For a full year, or until the fund’s net assets exceed $2.5 billion, BlackRock is offering a discounted fee of 0.12%. After that, it will rise to 0.25%.
The Spot Ether ETF issued by Invesco Galaxy is set at 0.25%, while the Grayscale Ethereum Mini Trust will start with a 0.12% fee and increase to 0.25% after 12 months or when net assets hit $2 billion.
Source: James Seyffart
Ether is presently trading at $3,470 – on the first trading day it ranged between $3,400 and $3,500.
