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Meanwhile, the 11 spot Bitcoin ETFs in the US have continued to see rising demand. Since their launch in January, these funds have accumulated a net inflow of $17.54 billion.
The newly launched US spot Ether exchange-traded funds (ETFs) saw the worst day for net inflows on July 25. These funds recorded $152.3 million in net outflows on their third day of trading.
The US Securities and Exchange Commission (SEC) greenlit the launch of nine spot Ether ETFs on July 22, with trading commencing on July 23 across multiple exchanges, including Nasdaq, NYSE, and Cboe. Despite the initial excitement, the funds have faced a rocky start.
Grayscale’s ETHE dominated the outflows yesterday, reporting net withdrawals of $346.22 million. However, other Ether fund inflows partially offset this outflow. BlackRock’s ETHA led the inflows by bringing $70.93 million. Additionally, Grayscale Ethereum Mini Trust, Fidelity’s FESH, and Bitwise’s ETHW also brought $58.09, $34.32 million, and $16.34 million in inflows, respectively. Similarly, VanEck’s ETHV recorded $8 million in inflow, while Invesco’s QETH contributed $6.24 to the table.
The remaining two spot Ether ETFs, managed by Franklin and 21Shares, saw no movement on Thursday.
Ether ETFs Performance Since Launch
The outflows on July 25 followed a similar trend from the previous day, which saw $133 million in net outflows. In contrast, the first day of trading on July 23 recorded a positive net inflow of $106.78 million. This brings the cumulative net outflows for all Ether ETFs to $178.68 million since their launch.
Since its conversion to spot ETF, Grayscale’s ETHE has witnessed $1.16 billion in outflows. On the other hand, BlackRock’s ETHA has been a notable performer, attracting $354.92 million in inflows since launch. Other significant inflows include $250 million for Bitwise’s ETHW and $180 million for Fidelity’s FETH.
The total daily trading volume for the spot Ether funds was around $860.8 million on July 25. This followed volumes of $1.05 billion on July 23 and $944.6 million on July 24. ETF analyst Eric Balchunas stated that the consistent trading volumes are a “good sign,” noting that trading often sees a sizable dropoff after a hyped-up first day.
Impact on ETH Price
Ether’s market performance has mirrored the ETF performance. The cryptocurrency is currently trading around $3,250, reflecting a decline of more than 4% over the past week. However, crypto experts believe that the recent regulatory approval will push the price to an upward trajectory, though not immediately.
For instance, crypto asset manager Bitwise CIO, Matt Hougan, recently predicted that Ether prices could drive to a record above $5,000 after the approval of spot Ether ETFs. Additionally, research firm Steno Research predicted that the newly launched ETFs could see $15 billion to $20 billion worth of inflows in the first year, which could potentially drive the price of ether up to $6,500. Notably, Ether achieved its all-time high of $4,891 in November 2021.
Meanwhile, the 11 spot Bitcoin ETFs in the US have continued to see rising demand. Since their launch in January, these funds have accumulated a net inflow of $17.54 billion.
