The much-anticipated launch of spot Ethereum ETFs on U.S. exchanges marked a pivotal moment for cryptocurrency investors, offering them a way to gain exposure to Ethereum without directly holding the asset. On the first day of trading, these ETFs saw a collective trading volume of $1 billion, about 23% of what spot Bitcoin ETFs achieved during their debut earlier this year.
Among the new ETFs, BlackRock’s iShares Ethereum Trust (ETHA) stood out, attracting $265 million in inflows, signaling strong investor confidence. Other new entrants also saw positive results, with Bitwise’s Ethereum ETF (ETHW) drawing over $200 million, and Fidelity’s Ethereum ETF (FETH) pulling in more than $70 million.
However, not all ETFs experienced inflows. Grayscale’s Ethereum Trust (ETHE), which transitioned from a closed-end fund to an ETF, faced substantial outflows, losing $484 million—around 5% of its total assets. The fund’s high expense ratio of 2.5% is likely a contributing factor to this outflow, especially compared to the lower fees offered by competitors, ranging between 0.15% and 0.25%.
In response, Grayscale introduced the Ethereum Mini Trust (ETH), a product with a more competitive fee structure. The Mini Trust charges a mere 0.15% and offers fee waivers for the first six months or until it reaches $2 billion in assets, aiming to attract fresh investments and mitigate outflows from ETHE.
Despite the excitement around these new ETFs, Ethereum’s price remained stable around $3,450, suggesting investors are cautiously optimistic about the long-term potential of these investment products.
While Ethereum ETFs didn’t match the debut volumes of Bitcoin ETFs, their $1 billion in trading volume still represents a major milestone for the cryptocurrency market.
