Ethereum ETF Net Inflows Hit $106 Million on Day 1 of Trading

Ethereum ETFs attracted $106 million in net inflows during their first day of trading Tuesday.

While a far cry from the $655 million Bitcoin ETFs attracted in their debut, the day was largely seen as a success among traders, given the large total volume of trading at $1 billion.

BlackRock's $ETHA led the pack, attracting more than $265 million in net flows, while Grayscale's Ethereum Trust $ETHE saw a staggering $484 million in outflows (it carries the highest management fee of any ETF in the new class at an expense ratio of 2.5%.)

Bloomberg's James Seyffart had told Coinage on Monday that trading volumes might be a better indicator of demand than net inflows during the early weeks given early seeding the funds may had been able to line up.

Analysts, including Seyffart and Fundstrat's Sean Farrell, have said inflows could be around 20% of what Bitcoin ETFs have attracted in their first 5 months. Tuesday's trading debut largely showed that those estimates might be correct as time continues.

Furthermore, as BlackRock's Bitcoin ETF also attracted another $581 million in net inflows, it also seemed to prove that both crypto ETFs could compliment each other as Bitwise's Matt Hougan had predicted on Coinage last week.

“I really don't think these ETFs will cannibalize what we've seen in Bitcoin," Hougan said, noting he's had discussions with wealth advisors who feel more comfortable being able to diversify now. "I think this is actually an accelerant even to Bitcoin ETF flows, which I know is counterintuitive [but] if you think professional investors want to move into the space... I think they're going to be happier having two assets than they were having one."

SEC Commissioner Hester Peirce told Coinage in an interview last week that the agency could reconsider allowing staking if issuers sought to include that as part of the Ethereum ETFs. Issuers had removed that language from their applications ahead of winning approval in May.

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