Ethereum
Ethereum ETFs Surpass $1 Billion in Trading Volume as ETH Price Underperforms
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Ethereum exchange-traded funds (ETFs) have already exceeds $1 billion in cumulative trading volume on their first day in the United States.
That would represent about a fifth of the first-day volumes recorded by Bitcoin ETFs during their blockbuster debut in January.
Grayscale’s ETHE leads the volume chart with $355 million. Some market participants are concerned about possible selling pressure that could be associated with outflows from the product. Fidelity Ethereum Fund (FETH) comes in second with $292 million. BlackRock’s ETHA is at $187 million.
Ethereum, the leading altcoin by market cap, is currently trading at $3,466 on the Bitstamp exchange after falling 0.9%.
While the launch of Ethereum ETFs appears to be a news-selling event, analysts are now waiting for the first-day inflows to provide definitive clues on the level of demand for these products. Coinbase researchers believe that stronger-than-expected inflows could be a bullish catalyst for the market (and vice versa).
As reported by U.TodaySeyffart and fellow analyst Eric Balchunas predicted that the much-hyped Ethereum ETFs could see inflows of about $6 billion in the first year. That’s a more optimistic forecast than JPMorgan, whose analysts had expected Ethereum ETFs to significantly underperform. The products could struggle to attract significant demand due to the lack of staking rewards.
Mike Novogratz, CEO of Galaxy Digital describe Ethereum ETFs are “a game changer” for the entire cryptocurrency industry. “Not only does this open up access to the second-largest cryptocurrency, it also provides much-needed regulatory clarity, confirming that Ethereum is not a security,” Novogratz added.
Meanwhile, BlackRock recently highlighted Ethereum’s ability to “drive digital transformation” across various industries.
About the Author
Alex Dovbnia
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.