Nikolas Sargeant
Ethereum spot ETFs recorded a net inflow of $33.7 million on July 30, turning total inflows positive since their launch. BlackRock's iShares Ethereum Trust (ETHA) leads with $118 million in inflows, followed by Fidelity's Ethereum Fund (FETH) with $16.4 million.
The nine Ethereum spot ETFs debuted on July 23, marking the first ETFs to directly invest in Ethereum. Meanwhile, Grayscale's Ethereum product (ETHE) continues to see outflows, mirroring investor behavior observed with the Bitcoin Grayscale Trust when spot ETFs launched in January.
Nate Geraci, president of The ETF Store, an advisory firm, notes that BlackRock's iShares Ethereum Trust ETF ranks in the top 15 inflows of ETFs launched this year.
Ethereum ETFs Face Initial Challenges
Ethereum spot ETFs experienced a total net outflow of $98.2 million on July 29, continuing for four consecutive days. This trend was largely due to investor withdrawals from high-fee legacy products converted to ETFs.
Despite the challenging start, experts believe Ethereum ETFs could gain momentum. Jag Kooner, head of derivatives at Bitfinex, predicts, "We believe Ethereum ETFs will attract inflows roughly a third the size of Bitcoin ETFs in the long term, aligning with the relative market caps and trading volumes of the two cryptocurrencies."
Kooner also notes increased market volatility since the launch of Ethereum ETFs. Ethereum's price has shown a "muted response," similar to Bitcoin's performance following its ETF launch in January, reflecting a typical sell-the-news event.
