This week, Ethereum spot ETFs (Exchange-Traded Funds) were officially approved and launched, filling the cryptocurrency community with excitement over the latest industry milestone. ETH-based investment products had an impressive first day, reaching over $1 billion in volume. After the second day of live trading, some experts shared that the ETFs’ second-day volume was higher than expected.
Ethereum Spot ETFs Beat Expectations
On Monday, the U.S. Securities and Exchange Commission (SEC) gave final approval for Ethereum-based ETFs, setting a launch date of Tuesday, July 23. Ahead of the launch, industry figures and pundits debated expectations for ETH-based ETFs versus their Bitcoin (BTC) counterparts.
Many believed that Ethereum-based products would only make up about 20%-30% of Bitcoin ETFs. Bitwise CCO Katherine Dowling emphasized that the highly anticipated ETFs were a “more nuanced sell” than BTC. This opinion was shared by others, including American entrepreneur Anthony Pompliano.
The BTC bull recently stated that Ethereum’s story isn’t “as clear” as Bitcoin’s “digital gold” narrative. For Pompliano, this has meant a significant drop in attention and interest from customary investors and media.
After the launch, the spot ETH ETF met experts’ expectations. The second cryptocurrency investment product reached a volume of around $1.05 billion on the first day, which is 24% of what the spot BTC ETF reached on the first day.
ETH ETFs total volume on day one. Source: James Seyffart on X
According to Bloomberg expert Eric Balchunas, eight up-to-date ETH ETFs raised $590 million on their first day, which is 83% of what nine up-to-date BTC ETFs raised on their first day. That figure was a “huge” start for the investment product and exceeded Balchunas’ expectations.
Despite a massive $484 million outflow from Grayscale’s Ethereum Trust (ETHE), ETH ETFs saw $107.8 million inflows on their first day, led by Blackrock’s iShares Ethereum Trust (ETHA) and Bitwise Ethereum ETF (ETHW) with $266.5 million and $204 million inflows, respectively.
Surprising volume on day two, but outflows steal the show
On the second day, Ethereum ETFs continued to surprise experts. Balchunas noted that some ETFs saw “about the same or even a little more volume” than the first day. To the expert, such results suggest a good sign, since “there is often a significant drop after a hyped first day.”
Bitwise CEO Teddy Fusaro common on X that by the middle of their second day of trading, Ethereum ETFs “were worth about $852 million.” By comparison, their Bitcoin counterparts were worth about $1.1 billion.
Fusaro expressed surprise at the number. He emphasized that “ETH ETFs are trading at about 75% of the notional value of BTC ETFs today,” which was higher than expected. James Seyffart shared a similar sentiment, stating that he was “really surprised.”
Nevertheless, Day Two closed its net flow in the red. According to provisional data from Farside Investors, ETH ETF saw outflows of around $133.3 million. ETHE saw outflows of $326.9 million, which lowered the positive net flows of the remaining Ethereum ETFs.
ETH ETFs net flows on July 24. Source: Farside Investors
According to the data, ETHA and ETHW saw significantly lower numbers on Wednesday, attracting only $17.4 million and $29.6 million in net inflows. However, FETH Fidelity, ETHV VanEck, and Mini Trust Grayscale increased their numbers on the second day, by $74.5 million, $19.8 million, and $45.9 million, respectively.
Ultimately, experts believe that the launch of Ethereum ETFs was “very solid,” despite seeing a 5 percent drop in volume on its second day. Compared Compared to a standard ETF launch, the second cryptocurrency-based investment product has exceeded expectations and landed in the top 10% of ETFs launched last year.
ETH is trading at $3,173 in the weekly chart. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
