The much-anticipated Ethereum spot ETF launched on July 23, 2024, in the United States, surpassing $1 billion in trading volume on its first day.
With Grayscale Ethereum Trust leading the pack, analysts predict that inflows into these ETFs will increase over time, despite initial capital outflows.
As the ETH price fluctuated around $3,400 to $3,500, we delve into what this means for investors and the future of Ethereum ETFs.
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ETH Spot ETF's Initial Trading Volume Rankings Revealed
On the evening of July 23, 2024, the Ethereum spot ETF (Exchange-Traded Fund) began trading in the United States, achieving over $1 billion in trading volume on its first day.
According to Eric Balchunas, an ETF analyst at Bloomberg, the Grayscale Ethereum Trust (ETHE) had the highest trading volume on the 23rd, with the following ETFs reporting these trading volumes:
| Name (Ticker) | First Day Trading Volume |
|---|---|
| Grayscale Ethereum Trust (ETHE) | $458 million |
| iShares Ethereum Trust (ETHA) | $248.7 million |
| Fidelity Ethereum Fund (FETH) | $137.3 million |
| Bitwise Ethereum ETF (ETHW) | $94.3 million |
| Grayscale Ethereum Mini Trust (ETH) | $63.8 million |
| VanEck Ethereum ETF (ETHV) | $44.8 million |
| Franklin Ethereum ETF (EZET) | $15.9 million |
| Invesco Galaxy Ethereum ETF (QETH) | $12 million |
| 21Shares Core Ethereum ETF (CETH) | $8.6 million |
| Total | $1.0834 billion |
Impact on ETH Price and Future Expectations
The Grayscale Ethereum Trust (ETHE) has transitioned from an Ethereum investment trust product to an Ethereum spot ETF. This conversion might lead to capital outflows from ETHE in the short term, potentially exerting selling pressure on Ethereum.
Grayscale previously converted its Bitcoin investment trust, Grayscale Bitcoin Trust (GBTC), to a Bitcoin spot ETF, which also saw capital outflows when the Bitcoin spot ETF began trading.
However, as seen during the Bitcoin spot ETF launch, funds that exited GBTC subsequently flowed into other ETFs. Over time, inflows into various Ethereum spot ETFs are expected to increase.
The ETHA and FETH ETFs, ranked second and third in trading volume on their first day, are from the world's largest asset management companies, BlackRock and Fidelity. These ETFs are also offering fee discounts for the first six months to a year, which is likely to attract more capital inflows in the future.
Despite an initial drop to around $3,400 following the launch of the Ethereum spot ETF, the ETH price has since rebounded to $3,500. At the time of writing, 1 ETH is trading at $3,442.
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