Key Takeaways
Ethereum exchange-traded funds (ETFs) made a strong debut in the US market, generating nearly $2 billion in trading volume within the first two days. While initial investor enthusiasm was high, with billions in assets under management, Ether’s price has dropped by double digits since the launch.
Still, analysts predict substantial inflows into Ethereum ETFs, which could potentially drive ETH prices significantly higher in the coming months.
Ethereum ETFs have been on a roll, pulling in significant volumes. On their debut day, July 23, the funds traded over $1.05 billion. The momentum continued into the second day, with spot Ether ETFs generating approximately $951 million in cumulative trading volume on Wednesday, July 24.
In terms of market share, Grayscale’s Ethereum Trust (ETHE) led the pack with around $500 million, accounting for roughly 52% of the total volume. BlackRock’s iShares Ethereum Trust (ETHA) followed closely, attracting over $250 million in investment, while Fidelity’s Ethereum Fund (FETH) secured $113 million in inflows.
Despite the strong trading volume, the newborn nine US spot Ethereum ETFs experienced a reversal of fortunes on their second day. After drawing in $107 million in inflows on their debut day and accumulating over $10 billion in assets under management (AUM), the ETFs saw $133 million in net outflows on Wednesday.
Despite the successful launch of the ETF, ETH has fallen by approximately 10% over the last 24 hours, with the overall crypto market experiencing a 3% decline. At the time of writing, Ethereum was trading at around $3,172.58, representing a 7.8% drop over the past day, according to data from CoinMarketCap .
Konstantin Shulga, CEO and co-founder of Finery Markets noted that Ethereum trading volumes rose by 32% in the first half of 2024 compared to the same period in 2023 in the OTC market.
“Consequently, we can reasonably expect further market strengthening in response to the swift approval of the ETH ETF. However, it is essential to recognize that beyond the initial hype, business routines prevail,” he said.
“We observed a significant BTC rally following the launch of BTC ETFs. Anticipation for ETH, the second-largest digital asset, is high, especially in the current bullish market. Research indicates Ethereum’s higher sensitivity to global ETP flows compared to Bitcoin. However, we should remain patient and account for volatility and potentially inflated expectations,” Shulga added.