Ethereum
Ethereum ETFs Hit $10.2 Billion in Assets Across 9 Funds, First-Day Volume Surpasses $1.1 Billion
The launch of Ethereum ETFs has crossed the $1.1 billion mark in trading volume on its first day.
Ethereum ETFs have recently made a significant impact on the market, with $10.2 billion in assets spread across nine ETFs. On the day of their launch, trading volumes exceeded $1.1 billion, indicating strong investor interest.
Day 1 Recap: Ethereum ETFs now have $10.2 billion in assets across 9 ETFs. Day 1 volumes topped $1.1 billion for the group. Total net flows were +$107 million after accounting for the massive -$484 million that came out $ETHE. Very solid first day https://t.co/Cl92SkXJP9 pic.twitter.com/b7ZS2sGKs0
— James Seyffart (@JSeyff) July 24, 2024
Transaction entries and volumes
Fidelity (FETH) saw an inflow of $71.3 million, while Grayscale ETHE saw an outflow of $484 million. BlackRock and Bitwise ETFs led the way with inflows of $266.5 million and $204 million, respectively.
UPDATE: The first full day of inflows for ETHness holdings has arrived. Ethereum ETFs have taken in $107 million. @Black Rock‘s $ETHA leading with $266.5 million, followed by @BitwiseInvest‘s $ETHW with $204 million. A very solid first day pic.twitter.com/j28vIwVWvR
— James Seyffart (@JSeyff) July 24, 2024
Bloomberg analyst Eric Balchunas suggested that if BlackRock’s Ethereum ETF (ETHA) surpasses $200 million in trading volume, Ethereum ETFs could surpass his previous estimate that they would capture only 20% of Bitcoin inflows.
Using BlackRock’s ETF as a proxy, $ETHA volume after the first hour will be around $50 million. If it can surpass $200 million by the end of the day, it will surpass our estimate of “20% of BTC” (given $IBIT (I made $1 billion on my first day). Sounds promising, but who knows…
— Eric Balchunas (@EricBalchunas) July 23, 2024
Matt Hougan, Bitwise’s chief investment officer, suggests that investors are unlikely to replace Bitcoin with ETH, but should instead hold both as part of a diversification strategy. He recommends starting with this portfolio: 60% in Bitcoin ETPs, 30% in Ethereum ETPs, and 10% in Crypto Equities ETPs.
In an X-rated post, Balchunas also noted that ETF ETH significantly outperform other ETFs launched in the last 12 months if we exclude Bitcoin ETFs.
I was curious how Eth ETFs would rank in terms of first day volume compared to the ~600 new launches over the last 12 months, but *excluding* BTC ETFs and $ETHA would be #1 (by far), $FETH #2, $ETHW #5 and $ETH 7th, and $ETHV in 13th place. And $CETHwho was the lowest among the group, would still be… pic.twitter.com/qXJFcuupi5
— Eric Balchunas (@EricBalchunas) July 23, 2024
In May, the Securities and Exchange Commission (SEC) gave preliminary approval to ETF issuers, allowing them to list these funds on exchanges. The impact of ETH ETF performance will also depend on how political and regulatory attitudes in the United States toward the cryptocurrency industry evolve.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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