Ethereum ETFs Hit $107 Million Inflows on Debut: ‘Very Solid First Day’
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U.S. spot Ethereum exchange-traded funds have only been trading for a day, but fresh data from Bloomberg shows they’re off to a “solid” start. Despite substantial outflows from Grayscale’s Ethereum Trust (ETHE) topping $484 million, the combined total inflows from eight other competitors have dragged the performance into positive territory. Funds belonging to BlackRock (ETHA) and Bitwise Asset Management (ETHW) topped the list, clocking $266 million and $204 million, respectively, pushing the total inflows, excluding Grayscale, to $590 million. “The Ethereum ETFs took in $107 million,” Bloomberg analyst James Seyffart tweeted on Tuesday alongside accompanying ETF data. “Very solid first day.” The volume for the full day’s worth of trading for the funds also topped $1.1 billion, doubling its $600 million figure achieved halfway through Tuesday, data shows. In May, the U.S. Securities and Exchange Commission gave preliminary approval to ETF issuers, providing a pathway to begin listing the funds on exchanges—much to the surprise of crypto industry participants at the time. With the initial excitement stemming from that approval now out of the way, some analysts forecast significant holdings flowing into the funds over the next year, bolstering their total assets under management. “We may see $5 billion to $10 billion aggregate AUM over the next 12 months,” Katalin Tischhauser, head of investment research at digital asset banking group Sygnum Bank, told Decrypt. “However, it’s likely that the demand from new types of investors will occur more in the first half of 2025 than during this year,” Tischhauser said. “Hedge funds will probably move the fastest.” The range and scope of ETH ETF takings is likely to be impacted by the direction and pace of change in the U.S. political and regulatory environment against the crypto industry, she said. Political winds have shifted considerably in recent months, with Vice…
Filed under: News - @ July 25, 2024 9:22 am