Ethereum ETFs Make Strong Debut with $667 Million Trading Volume
Ethereum ETFs launched in the U.S. on Tuesday, generating over $1.019 billion in cumulative trading volume on their first day, according to Yahoo Finance data compiled by The Block Pro Research. The SEC allowed registration statements from eight issuers to become effective on Monday, marking the final sign-off for these ETFs to begin trading at 9:30 a.m. ET on Tuesday.
Six of the funds are using Coinbase as a custodian, VanEck is using Gemini, and Fidelity is self-custodying its ether. While Spot Bitcoin ETFs, which launched in the U.S. in January, have amassed over $60 billion in assets under management and $17.5 billion in net inflows combined, analysts predict that Ethereum ETFs will attract significantly less investment. They estimate these ETFs could generate $750 million to $1 billion in net inflows per month, amounting to around 10% to 15% of the Bitcoin ETFs’ assets. By the end of Tuesday, the new U.S. spot Ethereum ETFs had already generated a trading volume exceeding $667 million.
BlackRock’s Spot Bitcoin ETF Sees Major Inflows
BlackRock’s spot Bitcoin ETF, IBIT, saw net inflows of $526.7 million on Monday, marking its largest intake since March 13. Fidelity’s FBTC, Invesco’s BTCO, and Franklin Templeton’s EZBC added $23.7 million, $13.7 million, and $7.9 million worth of net inflows, respectively. However, net outflows of $47.7 million from Bitwise’s BITB and $38.4 million from VanEck’s HODL reduced total net inflows to $485.9 million. Other funds, including Grayscale’s GBTC, Ark Invest’s ARKB, and Valkyrie’s BRRR, reported zero flows for the day.
Mt. Gox Bitcoins Move Again
A wallet linked to Mt. Gox transferred approximately 42,587 BTC ($2.85 billion) to internal addresses on Tuesday. This move is part of an ongoing repayment process involving $9 billion worth of bitcoin owed to creditors. Later, Mt. Gox moved around 1,980 BTC ($131.8 million) to crypto exchange Bitstamp in two separate transactions, suggesting that Bitstamp’s distribution of bitcoin repayments is imminent. Bitstamp is one of five firms selected by the Mt. Gox trustee to manage the payouts. Bitbank and SBI VC Trade have already received and distributed their Mt. Gox funds, while BitGo has yet to receive its allocation. Meanwhile, Kraken began repayments to customers on Tuesday after receiving its allocation from Mt. Gox last week.
Pudgy Penguins Secure $11 Million in Funding
Igloo, the parent company of the popular NFT brand Pudgy Penguins, has raised over $11 million in a strategic funding round led by Peter Thiel’s Founders Fund. The funds will be used to develop a new Layer 2 blockchain, Abstract, and to establish Cube Labs, a new venture under Igloo. Abstract, incubated under the not-for-profit Abstract Foundation and built using Matter Labs’ ZK Stack and EigenLayer’s EigenDA, aims to make decentralized app development easier, cheaper, and safer. Abstract is currently live on testnet, with a mainnet launch expected by the end of the year.
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FAQ: Ethereum ETFs and Recent Crypto News
What are spot Ethereum ETFs, and when did they launch in the U.S.?
Spot Ethereum ETFs are exchange-traded funds that directly hold ether, the native cryptocurrency of the Ethereum blockchain. They launched in the U.S. on Tuesday after the SEC allowed registration statements from eight issuers to become effective.
Who are the custodians for these new Ethereum ETFs?
Six of the funds use Coinbase as a custodian, VanEck is using Gemini, and Fidelity is self-custodying its ether.
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