Ether ETFs Make Strong Debut in US Markets
The first US ETFs that invest directly in Ether have made a strong debut, with over $1 billion in shares traded between nine exchange-traded funds. While this is not as high as the trading volume seen during the launch of spot-Bitcoin ETFs in January, it is still a robust start for these first-day ETFs. Several of the funds are among the top 50 highest-traded US ETF debuts of all time.
BlackRock’s iShares Ethereum Trust ETF (ticker ETHA) saw $248 million of shares exchange hands, while Grayscale’s Ethereum Trust, which converted into an ETF, traded around $458 million. Bitwise Asset Management Inc.’s product (ETHW) also saw solid demand, with turnover exceeding $94 million.
According to Roundhill Financial Vice President of Research and Operations Drew Walsh, the audience for Ether ETFs is similar to that of Bitcoin ETFs, with many new investors seeking exposure to cryptocurrencies.
The trading volume does not necessarily indicate buying or selling or investor inflows, as the net flows into or out of the products may not be known until at least Wednesday.
Matt Hougan, chief investment officer at Bitwise, expressed his surprise at the incredible reaction to the Ether ETF launches, exceeding his expectations.
Analysts have varying forecasts for the cash flows into Ether funds, with estimates ranging from $3.2 billion to $6.4 billion. Christopher Jensen, head of digital assets research at Franklin Templeton, believes that investor adoption of Ether ETFs could happen at a quicker pace due to the familiarity with Bitcoin funds.
Despite the potential for Ether funds to attract significant flows, Bitcoin still holds a first-mover advantage, with some investors preferring to maintain exposure to the original cryptocurrency token.
The price of Ether remained relatively stable, falling less than 1% to $3,481. The native token of the Ethereum blockchain has seen a 50% rally so far this year.
Overall, the debut of Ether ETFs in the US has generated significant interest and trading activity, signaling a growing appetite for exposure to cryptocurrencies among investors.
