The year 2024 has been quite eventful for the cryptocurrency industry so far, especially for Ethereum. The US Securities and Exchange Commission approved nearly ten exchange-traded funds (ETFs) tracking Ethereum’s performance, providing validation for the second-largest digital asset. However, the first trading days of these ETH ETFs have been a bit disappointing.
After some regulatory paperwork delays, the ETH ETFs finally launched on US stock exchanges on July 23. The initial trading day saw significant volumes and $106.6 million in total inflows. Despite this, Grayscale’s converted fund (ETHE) experienced outflows of $484.1 million. Other ETFs like BlackRock’s ETHA and Bitwise’s ETHW managed to offset some of Grayscale’s losses.
Unfortunately, the positive flows were short-lived as the following days saw substantial outflows, particularly from Grayscale’s ETHE. The total outflows for July 24, 25, and 26 were $133.3 million, $152.4 million, and $162.7 million, respectively. The withdrawn funds continue to increase, raising concerns among investors.
Bloomberg’s ETF specialist, Eric Balchunas, noted the challenging start for the spot Ethereum ETFs but highlighted some positives in the performance of the “new eight” products. These newly launched ETFs, excluding Grayscale’s converted one, showed healthy inflows and volume, providing a glimmer of hope for the Ethereum market.
Despite the initial setbacks, Ethereum managed to recover most of its losses from earlier in the week when it dropped from $3,500 to $3,000 in a short period due to ETF outflows. Currently, ether is trading close to $3,300, showing resilience in the face of market fluctuations.
In conclusion, while the first trading days of Ethereum ETFs may have been challenging, there are signs of optimism in the market. Investors will be closely monitoring the performance of these ETFs and the overall movement of Ethereum in the coming days to gauge the long-term impact of these developments on the cryptocurrency industry.