Bitrabo Editorial
Spot Ethereum ETFs recently hit the market, sparking excitement within the cryptocurrency community. The ETFs, based on Ethereum (ETH), had an astounding first day, recording a volume of over $1 billion. As the ETFs went live for their second day, their trading volume exceeded what experts had originally anticipated.
Spot Ethereum ETFs Surpass Expectations
The US Securities and Exchange Commission (SEC) approved spot Ethereum ETFs, scheduling their launch for July 23. Before their debut, industry insiders and experts discussed the performance expectations of these ETH-based ETFs in comparison to Bitcoin (BTC) ETFs.
While some anticipated that the Ethereum products might only achieve 20%-30% of what Bitcoin ETFs have accomplished, others, including Katherine Dowling from Bitwise, noted that the ETH ETFs presented a more nuanced investment opportunity compared to the straightforward Bitcoin narrative. This sentiment was echoed by figures like Anthony Pompliano, who highlighted that Ethereum lacks the clarity of being a “digital gold” asset, which could potentially hinder its mainstream appeal.
Following their launch, the spot ETH ETFs performed well, generating around $1.05 billion in volume on their debut, representing 24% of the volume seen by spot BTC ETFs on their first day.
Second-Day Volume Surprises, But Outflows Steal The Show
On the second day of trading, Ethereum ETFs continued to impress experts with their trading volume. Some ETFs matched or even exceeded the trading volume of the first day, which is seen as a positive sign as there is usually a significant drop in activity following a hyped-up launch.
By midday on the second trading day, the ETH ETFs had traded approximately $852 million worth, slightly trailing the trading volume of their Bitcoin counterparts at around $1.1 billion. This performance was higher than anticipated, with ETH ETFs accounting for about 75% of the notional value of BTC ETFs, surprising many in the industry.
However, despite the positive trading volume, ETH ETFs experienced net outflows on the second day, primarily led by substantial outflows of $326.9 million from Grayscale’s Ethereum Trust (ETHE), overshadowing the net inflows from other Ethereum ETFs.
While certain ETFs like ETHA and ETHW saw decreased net inflows, others like Fidelity’s FETH, VanEck’s ETHV, and Grayscale’s Mini Trust saw improvements in their numbers, indicating a mixed performance across different ETF products.
Despite a 5% drop in trading volume on the second day, experts view the launch of Ethereum ETFs as successful, surpassing expectations and ranking among the top 10% of ETF launches in the past year.