The US spot ETH ETF market saw mixed results in terms of net flows in the first few days of trading. While the Grayscale Ethereum Trust (ETHE) experienced significant outflows of $1.5 billion, other funds such as BlackRock’s iShares Ethereum Trust (ETHA), Bitwise Ethereum ETF (ETHW), and Fidelity (FETH) saw positive flows totaling $927 million. Analysts believe that the outflows from ETHE are likely due to clients taking profits and switching to cheaper products, and expect the newly issued ETFs to attract more inflows over time.
Despite launching during a period of lower trading activity in the summer, the spot ether ETFs saw trading volumes of $1.1 billion on their opening day. Nate Geraci, president of The ETF Store, described the debut of the ETH ETFs as “highly successful,” noting that excluding ETHE, the funds attracted $1.2 billion in net inflows. Analysts predict that ETH ETFs will capture about a third of the flows of their Bitcoin counterparts, but the data shows that BlackRock’s ETHA outperformed expectations by capturing 41% of the inflows of its BTC counterpart.
Grayscale also managed to capture capital with its Ethereum Mini Trust, despite the outflows from its ETHE product. The Ethereum Mini Trust, which features a low price point of 0.15%, attracted $164 million in inflows and is expected to appeal to younger investors. Neena Mishra, director of ETF research at Zacks Investment Research, believes that BlackRock’s strong distribution network and marketing power will keep ETHA ahead of its competitors, but also highlights the potential of Grayscale’s Ethereum Mini Trust.
Overall, while the initial net flows for the US spot ETH ETF market were impacted by the outflows from ETHE, other funds such as BlackRock’s ETHA, Bitwise Ethereum ETF, and Fidelity saw positive traction. Analysts remain optimistic about the future performance of the ETH ETFs, expecting them to attract more inflows over time and gradually surpass the outflows from the closed-end Grayscale fund. With strong trading volumes on their opening day and positive flows from several funds, the ETH ETF market is off to a promising start.
