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The US-based spot Ethereum ETFs scooped $107 million on the first day despite the notable cash outflow from Grayscale’s ETHE.
The final approval of the nine US-based spot Ethereum (ETH) exchange-traded funds (ETFs) signaled the onset of mainstream adoption of crypto assets by major Wall Street investors. After years of lobbying from the crypto leaders, the US political parties are bending to the idea of digital assets overhauling traditional financial systems.
On Tuesday, the total spot Ethereum ETF inflow was $106.78 million, and a total of $1.11 billion in traded volume. As expected, the Grayscale Ethereum Trust (ETHE), with a total assets of about $8.6 billion, registered a net cash outflow of around $484 million. However, the Grayscale Ethereum Mini Trust (ETH), with a total assets of about $1.03 billion, reported a net inflow of around $15 million.
BlackRock’s iShares Ethereum Trust ETF (ETHA), with about $277 million in total assets under management, registered a net cash inflow of around $266.55 million on Tuesday. The Bitwise Ethereum ETF (ETHW), with about $206 million in total assets under management, reported a net cash inflow of around $204 million.
The Fidelity Ethereum Fund (FETH), with a total assets of about $75.66 million, registered a net cash inflow of around $71.31 million. The remaining spot ETH ETF issuers reported a cash inflow of between $5 million and $15 million.
Ethereum Price Prepares for Liftoff
The listing and trading of several spot Ether ETFs in the United States did not have a major impact on the underlying price action. Nevertheless, the low volatility presented a great opportunity for long-term buyers who purchased 112.9K Ether, worth around $390 million.
According to a popular analyst alias Crypto Capo on the X platform, Ethereum price is aiming to retest its all-time high set in 2021 at around $4,867. However, the crypto analyst indicated that Ethereum price against the US dollar could continue to consolidate between $2,950 and $3,950 before breaking out toward its ATH.
The spot ETF has finally been approved and has started trading.
First day:
-Total volume of $1B, 23% of what the spot $BTC ETFs did on their first day
-Net inflows of $106.7M
The chart looks like consolidation before a new ATH. pic.twitter.com/yTajgKCvWJ
— il Capo Of Crypto (@CryptoCapo_) July 24, 2024
If the adoption curve for the spot Ethereum ETFs follows that of spot Bitcoin ETFs in the coming months, Ether’s price could soar to its ATH before the end of this year.
Market Picture
The Ethereum network remains the undisputed leader in web3 and smart contracts, with about $60 billion in total value locked and nearly $80 billion in stablecoins market cap. More institutional investors continue to tap into the Ethereum ecosystem for real-world assets tokenization to scale their respective business operations.
For instance, automotive giant Toyota is reported seeking to integrate the Ethereum network with its cars. The mainstream adoption of ETH is a direct result of years of development and updates to meet regulatory requirements and harmonize with users’ needs.
