What Impact Did the First Trading Days of Spot ETH ETFs Have on the Market?

the First Trading Days of Spot ETH ETFs: What You Need to Know

The 2024 crypto sector still has a long way to go, but this year is not just for Bitcoin. Earlier this year, the US Securities and Exchange Commission approved nearly ten exchange-traded funds that tracked the performance of the second-largest digital asset, giving it even more credibility. However, trade has not been particularly exciting throughout the first several days. After receiving initial approval some months ago, the ETH ETFs were ultimately released on US stock exchanges on July 23 after some regulatory documentation had to be adjusted.

• Despite the fact that $484.1 million left Grayscale’s converted fund (ETHE), the first trading day saw significant volumes and $106.6 million in total inflows.
• This is because Grayscale’s losses were covered by a number of investments, including Bitwise’s ETHW (with $204 million) and BlackRock’s ETHA (with $266.5 million).

Big Exits from Grayscale ETHE Continue: First Days of the Ethereum ETF Market

The next three days saw a change in the tide, so these favorable flows weren’t sustained. The remaining ETFs’ flows aren’t keeping up with Grayscale’s ETHE, which continues to face significant outflows. For the past 3 days, the outflows were as follows:

• $326.9 million on July 24
• $346.2 million on July 25
• $356.3 million on July 26

The entire amount that was taken out during these days was $133.3 million, $152.4 million, and $162.7 million, in that order. The fact that more money is being taken out is especially worrisome. The so-called “new eight” products—all recently issued ETFs except for Grayscale’s converted one—performed better than expected, according to Eric Balchunas, Bloomberg’s ETF analyst, albeit acknowledging that all spot Ethereum ETFs had difficult initial days.

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