United States Ether exchange-traded funds (ETFs) posted net inflows of $106.6 million on their first day of trading despite massive outflows from Grayscale’s freshly-converted Ethereum Trust.
BlackRock’s iShares Ethereum Trust ETF (ETHA) led the pack with $266.5 million of inflows, followed closely by the Bitwise Ethereum ETF (ETHW) with $204 million in net inflows.
The Fidelity Ethereum Fund ETF (FETH) came in third with $71.3 million.
The inflows to the “newborn” spot Ether (ETH) ETFs were enough to overcome bleeding from the Grayscale Ethereum Trust (ETHE), which saw outflows of $484.9 million on the day, amounting to 5% of the once $9 billion fund.
ETHE was launched by Grayscale in 2017, allowing institutional investors to buy ETH. However, it imposed a six-month lock-up period on all investments.
Its conversion to a spot ETF means that investors can more easily sell their shares, which could explain the high day-one outflows.
In January, spot Bitcoin (BTC) ETFs were marred by a similar dynamic with the Grayscale Bitcoin Trust, which saw over $17.5 billion in outflows following the launch of the 11 spot BTC ETFs.
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Meanwhile, Grayscale’s Ethereum Mini Trust — a spinoff product launched by the asset manager with lower fees — generated $15.2 million in new inflows.
Franklin Templeton’s Franklin Ethereum ETF (EZET) netted $13.2 million, while 21Shares’ Core Ethereum ETF (CETH) saw $7.4 million in inflows.
Overall, spot ETH ETFs generated $1.08 billion in cumulative trading volume on their first day of trading, 23% of the volume that Bitcoin ETFs saw on their debut.
The price of ETH tumbled slightly on the day.
ETH is changing hands for $3,451 at the time of publication, down 1.4% in the last 24 hours and 1.5% in the last seven days, according to TradingView data.
Spot Ether ETFs received final approval from the SEC on July 22 and went live for trading in the United States on July 23.
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