The recent launch of nine spot Ethereum exchange-traded funds (ETFs) on July 23 marked a significant milestone in the crypto market. Major financial players such as Grayscale, BlackRock, Franklin Templeton, Fidelity, and others received approval for their ETFs after regulatory hurdles. Despite a strong start, with $107 million in net inflows on the first day, total outflows reached $341 million by July 26. Notably, all funds except for the Grayscale Ethereum Trust reported positive inflows. Let’s delve into the details of these ETFs, their fee structures, and performance as of July 26.
Grayscale’s Ethereum Mini Trust, listed on the NYSE under the ticker ETH, stands out for its low management fee of 0.15%, with fees waived to 0% for the first six months or up to $2 billion in assets. Coinbase serves as the custodian, and the fund saw inflows of $15.1 million on the first day. On the other hand, Grayscale Ethereum Trust (ETHE), with a 2.5% fee, experienced substantial outflows totaling $1.5 billion in the first four days. Franklin Templeton’s ETF charges a fee of 0.19%, with fees waived until January 31, 2025, for the first $10 billion in assets, and has seen inflows of $23.3 million.
VanEck’s Ethereum ETF, with a fee of 0.20% waived through July 22, 2025, or the first $1.5 billion in AUM, had inflows of $7.6 million. Bitwise Ethereum ETF, charging a low fee of 0.20%, witnessed strong inflows of $204 million on the first day. The 21Shares Core Ethereum ETF, with a fee of 0.21%, had initial inflows of $7.5 million, but no additional inflows since then. Fidelity’s Ethereum Fund, with a fee of 0.25% and fees waived until the end of the year, saw inflows of $71.3 million. Lastly, the iShares Ethereum Trust ETF by BlackRock with a 0.25% sponsor fee and one-year waiver, had substantial inflows of $266.5 million on the first day.
Coinbase’s role as the custodian for most of these ETFs provides it with a competitive advantage in the market. Custodial services offer a steady income stream and strengthen Coinbase’s position as the crypto market grows. The company’s share price has nearly doubled in the last six months, indicating growing optimism. Moving forward, ETFs like iShares Ethereum Trust (ETHA) and Fidelity’s FETH have shown high trading volumes, suggesting strong investor interest in regulated Ethereum products.
According to Eric Balchunas, a senior Bloomberg ETF analyst, iShares Ethereum Trust had the highest trading volume on day one compared to new ETF launches in the past year, excluding Bitcoin ETFs. Matt Hougan, Chief Investment Officer at Bitwise, believes that spot Ethereum ETPs could attract $15 billion in net flows within the first 18 months. The demand for regulated Ethereum products appears promising, with investors showing eagerness to invest in Ethereum. However, market conditions can change rapidly, so wise trading decisions are essential. This article serves as educational material and does not provide investment advice.
