Ethereum ETF Debut Surpasses Estimated BTC Performance by 20% on First Day
U.S. Ethereum (ETH) ETFs had an impressive start, surpassing $1 billion in trading volumes on their debut day, exceeding expectations set by analysts for Bitcoin (BTC) ETFs. BlackRock’s ETHA stood out, while Grayscale experienced significant outflows of nearly half a billion dollars.
The trading volumes on day one for Grayscale’s ETHE, BlackRock, and Fidelity ETH ETFs, collectively reached over $100 million. Other ETFs like Vaneck, Franklin, and Invesco Galaxy also saw substantial daily trading volumes exceeding $10 million, with 21Shares being an exception.
From a flow perspective, data from Bloomberg indicated that the products recorded $107 million in net inflows, with BlackRock’s ETHA leading with $266.5 million and Bitwise’s ETHW following with $204 million in inflows.
Despite Grayscale’s ETHE experiencing significant outflows of $484.1 million, other ETH ETFs collectively surpassed $1 billion in trading volume and over $100 million in net flows, outperforming analysts’ predictions.
Bloomberg analyst Eric Balchunas had forecasted that the products would exceed the estimated ‘20% of BTC ETF’ performance if BlackRock’s volume crossed $200 million. BlackRock’s ETHA achieved a volume of $258 million by the end of the first trading day, surpassing expectations.
Zaheer Ebtikar of crypto hedge fund Split Capital also noted that the total volume across ETH ETFs reached approximately $1.3 billion, exceeding BTC’s debut performance by about 28% and surpassing estimates of 15-20%.
Some ETFs, such as Vaneck Ethereum ETF (ETHV), outperformed their BTC counterparts on the first day. VanEck’s head of digital asset research, Mathew Sigel, expressed pride in ETHV’s trading volume exceeding expectations.
Grayscale’s ETHE experienced significant outflows on the debut day, totaling $484.1 million, surpassing GBTC’s outflows during its debut. The price of ETH saw a slight increase of 1.25% on the ETF debut day, reaching $3.54k before declining slightly.
Following the ETF debut, the ETH spot market did not face significant sell pressure, as indicated by a decrease in Exchange Netflow, suggesting increased accumulation of ETH in personal wallets.
