Ethereum ETFs Debut: BlackRock Reigns With $260M Inflows, Grayscale Bleeds

Nine spot Ethereum ETFs commenced trading on the US stock market on Tuesday, marking a pivotal moment for the crypto industry following the Securities and Exchange Commission’s (SEC) green light on Monday. Ethereum ETFs See $1B In Trading Volume On Debut James Seyffart, a senior ETF analyst at Bloomberg, described the Monday ETF launch as a “pretty big success,” according to a Fortune report. However, the initial enthusiasm was tempered by a stark comparison to Bitcoin’s ETF debut earlier this year, which garnered $655 million in inflows on its first trading day. Related Reading: Mt. Gox Creditors Opt To HODL Bitcoin Rather Than Sell, CryptoQuant Data Shows Diving into the specifics, the Ethereum ETFs collectively amassed $10.2 billion in assets, with trading volumes surpassing $1.1 billion on day one. Grayscale’s Ethereum Trust (ETHE) led the volume race with $469.7 million.  Among the key players, BlackRock led the charge with $266 million in inflows, followed closely by Bitwise with $204 million and Fidelity with $71 million.  Despite these figures, the ETFs collectively witnessed net inflows of $107 million, overshadowed by Grayscale’s Ethereum Trust’s outflows of $484 million, as per Bloomberg data. However, the market response to the ETFs did not translate into a noticeable impact on Ethereum’s price, which experienced a marginal 0.8% decline since trading commenced.  Currently, the second largest cryptocurrency on the market is trading at $3,420, with a 27% decrease in trading volume in this area, amounting to $16 billion in the last 24 hours, and no significant changes to Tuesdays price value per coin.  Bright Future Despite Challenges Given that Ethereum’s market cap is a fraction of Bitcoin’s, the comparatively smaller inflows were somewhat to be expected. In addition, the Fortune report noted that the lack of a staking feature in the ETFs, which is prohibited by the SEC, also drove some investors to buy Ethereum directly, bypassing the new Ethereum ETFs mechanism. Another strong reason for the outflows on the first day of the ETHE fund is Grayscale’s 2.5% fee compared to competitors charging 0.25% or less, a factor that is believed to have influenced investor behavior and contributed to ETHE’s outflows. Related Reading: Forget $10,000, Crypto Analyst Says Spot Ethereum ETFs Will Drive ETH To $14,000 Despite the lack of market response, Seyffart remains optimistic about the reception of the Ethereum ETFs, citing the strong performance of smaller players such as 21 Shares’ Core Ethereum ETF, which attracted $8.7 million in inflows. Seyffart said to Fortune: Very successful launch day by any standard ETFs first day of trading. On top of this, the volume numbers were very strong.  Adding to the optimistic outlook for the Ethereum ETFs, it is noteworthy that Bitcoin (BTC) surged to an all-time high of $73,700 on March 14, just two months after the approved ETFs started trading.  Although ETFs investing in ETHs price may not attract as much inflow and trading volume as BTC, this could lead to a sustained increase in ETH’s price in the long term.  Featured image from DALL-E, chart from TradingView.com

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Ethereum Price Stays Flat Despite Todays ETF Debut: QCP Explains Why

In a day marked by the launch of the long-anticipated spot Ethereum (ETH) Exchange-Traded Fund (ETF) in the United States, the markets response has been unexpectedly subdued. Analysts from Singapore-based crypto asset trading firm QCP Capital have shed light on the reasons behind this muted reaction, blaming the situation on previous market behaviors and other news from the broader market. Why The Ethereum Price Is Not Skyrocketing In their investor note, QCP Capital points out that the market may be adhering to a buy the hype, sell the news pattern, similar to the US spot Bitcoin ETF launch scenario. When the spot Bitcoin ETF debuted on January 11 this year, Bitcoin prices surged prior to the launch but later fell to $38,000, recording a -21% drawdown in the first 12 days after the launch. This price action was mainly driven by the outflows from the Grayscale Bitcoin ETF, which converted from the GBTC Trust and opened the possibility for investors to withdraw their holdings for the first time in years. A similar scenario could be looming for ETH, although there’s a key difference with Grayscales launch of the Mini ETF. To recall, Bitcoin subsequently reached new all-time highs within two months. So, QCP suggests that investors are being cautious and waiting for further developments before making any major moves in the ETH market. Related Reading: US Spot Ethereum ETFs Poised To Draw $1.2 Billion Monthly: Research Firm In addition, general market sentiment, which is heavily influenced by Bitcoin movements, could also play a crucial role. In particular, the transfers of Bitcoin by the US government and Mt. Gox have created a ripple effect that is impacting the dynamics of the crypto market as a whole. This morning, the US government transferred 58,742 BTC to Coinbase, while still holding 213,239 BTC worth approximately $14.2 billion. At the same time, Mt. Gox moved around 47,600 BTC to various wallets, including 5,110 BTC (340.1 million dollars) to Bitstamp. These large-scale movements may contribute to the market’s cautious stance. While spot prices for Ethereum remain flat, the options market is exhibiting notable activity. QCP observed that 26 July volatility made an impressive 8-vol rally, with the risk reversal (RR) dipping by 3 vols. This signals an increased caution towards potential downside movements. The divergence between the spot and options markets indicates that traders might be preparing for further price drops in the near term. Related Reading: Ethereum Retraces: Heres Why ETH Bulls Must Decisively Break Above $3,500 The options market seems to be expecting more downside movement in the near term, exacerbated by the US Government and Mt Gox news, QCP commented. Given the current conditions, QCP Capital suggests that Ethereum prices may remain subdued in the short term. The firm highlights potential BTC selling pressures from the US Government and Mt Gox as key factors that could indirectly keep ETH prices from rising. Additionally, with the ETH Spot ETFs impact not yet reflected in the market, traders might be waiting for more momentum to build up, possibly in the lead-up to the US elections. QCP’s investor note concludes, With the ETH Spot ETF potentially not impacting prices on the outset, coupled with potential selling pressure from the US Government and Mt Gox, prices may remain subdued until momentum builds up leading to the elections. At press time, ETH traded at $3,513, up 0.5% over the past 24 hours. Featured image created with DALL·E, chart from TradingView.com

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Ethereum ETFs Witness Stellar Start As Trading Soars; Analyst Sees ETHs Price Reaching $8,000 In Q4

Ethereum ETFs (exchange-traded funds) began trading on Tuesday, generating significant volume within the first 2 hours of trading. Interestingly, the Ethereum ETFs ranked among the top 1% regarding ETF volume.  Related Reading: Analyst Says Solana Price Will Surge 1,000% To $1,800, Heres When Ethereum ETFs Surpass Traditional Launch Volumes According to Bloomberg ETF expert Eric Balchunas, the ETH ETFs traded $361 million in the first 90 minutes on launch day, surpassing the typical volume seen at the launch of traditional ETFs. Blachunas said: Here’s where we at after 90 minutes. $361m total. As a group that number would rank them about 15th overall in ETF volume (about what $TLT and $EEM trade), which is Top 1%. But again compared to a normal ETF launch, which rarely see more than $1m on Day One, all of them have cleared that number and then some. Matthew Sigel, head of digital asset research at asset manager VanEck, highlighted the significance of these figures in the first hours of trading, noting that Ethereum ETFs saw more than 50% of trading volume compared to Bitcoin’s $610 million on day one, indicating strong investor interest in Ethereum. However, how these numbers will fare at the close remains to be seen. Bitcoin ETFs saw $4.6 billion in volume on their first day of trading in January, which may indicate the future performance of these newly approved index funds for the second-largest cryptocurrency on the market. ETHs Price Targets Soar Crypto analyst Doctor Profit shared a report highlighting a potentially massive parabolic move for Ethereum’s price this year in the wake of the expected inflows in the new Ethereum ETF market.  While some anticipate a correction due to the “sell the news” phenomenon, Doctor Profit argues that the market has already factored in the ETF launch but has yet to consider the significant inflows of USD that will flood into the Ethereum ETFs.  With Ethereum’s market cap being three times smaller than Bitcoin’s, Doctor Profit believes that every dollar invested in ETH is expected to have three times the price impact compared to Bitcoin, positioning Ethereum favorably for substantial price gains. Furthermore, the analyst contends that while Ethereum’s Grayscale ETH Fund sell pressure is comparable to the Bitcoin ETF launch, the impact is expected to be less severe.  Related Reading: Helium (HNT) Rockets In Value With 41% Rally Heres Why Looking ahead, Doctor Profit has set expected price targets for Ethereum in the coming months, including a potential target between $4,500 and $5,500 by Q3 2024, indicating steady but modest growth.  Moving into Q4 2024 and Q1 2025, the price range is expected to expand from $5,500 to $8,000. However, it is in Q2 2025 that Ethereum is expected to significantly jump, with price targets ranging from $8,000 to $14,000.  At the time of writing, ETH is trading at $3,444, showing sideways movement with no significant change from yesterday’s price, despite the hype surrounding the launch of the ETF market.  Featured image from DALL-E, chart from TradingView.com

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EU markets will pave the way for first Ether staking ETF: dYdX CEO

While the US markets are not yet prepared for an Ether staking ETF, the European markets might lead the way by introducing the first staked exchange-traded fund.

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Bitwise CIO Bullish On Ethereum ETFs Fueling Surge To Record Highs Above $5,000

As the highly anticipated launch date of spot Ethereum ETFs approaches, Matt Hougan, Chief Investment Officer of crypto asset manager Bitwise, has stressed the potential for these ETF inflows to drive the Ethereum price to record highs.  In a recent client note, Hougan highlighted the significant impact that ETF flows could have on the Ethereum [...]

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Spot Ethereum ETF launch delayed by SEC comments

The SEC commented on the S-1 forms and requested resubmissions by July 8, potentially delaying the launch of spot Ether ETFs until mid-to-late July.

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How billions in outflows from Grayscale could impact Ethereum ETF launch

Outflows from the Grayscale Ethereum Trust (ETHE) could dampen the Spot Ethereum ETF approval party but create significant opportunities for traders.

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