The launch of spot ether exchange-traded funds (ETFs) in the U.S. marked a significant milestone for cryptocurrency investors. Nine ETFs tied to ether—the native cryptocurrency of the Ethereum blockchain—collectively attracted $106 million in net inflows on their first trading day, according to data from CF Benchmarks and leading trading firms.
Key Performers Among Ether ETFs
The top performers mirrored the success patterns seen earlier this year with spot bitcoin ETFs:
- BlackRock’s iShares Ethereum Trust (ETHA) led with $266.5 million in inflows, showcasing strong investor confidence.
- Bitwise Ethereum ETF followed closely with $204 million.
- Fidelity Ethereum Fund (FETH) secured $71 million in assets.
These results highlight the dominance of established financial firms in the crypto ETF space.
Grayscale’s Outflows and Investor Rotation
The Grayscale Ethereum Trust, which transitioned from a publicly traded trust to an ETF, entered the market with over $9 billion in assets** but faced substantial outflows of **$484 million. Analysts attribute this to its higher fee structure (2.5%) compared to competitors charging 0.20%–0.25%.
Notably:
- Grayscale’s bitcoin ETF had only $95.1 million in outflows on its debut day in January.
- Investors appear to be shifting toward lower-cost alternatives, such as the Grayscale Ethereum Mini Trust (ETH), which saw $15.1 million in inflows at a competitive 0.15% fee.
Crypto market-maker Wintermute described the overall launch as a "marginal success," citing robust initial trading volumes and investor interest.
FAQ Section
Q: Why did Grayscale’s ether ETF experience higher outflows than its bitcoin ETF?
A: The higher fee (2.5%) and availability of cheaper alternatives likely drove investors to rotate out of Grayscale’s offering.
Q: Which ether ETF had the highest inflows?
A: BlackRock’s iShares Ethereum Trust (ETHA) topped the list with $266.5 million.
Q: Will lower fees continue to attract more investors to new ETFs?
A: Yes—cost efficiency is a critical factor, as seen with the Grayscale Ethereum Mini Trust’s inflows despite its late launch.
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Data sources: CF Benchmarks, Wintermute Trading, Reuters.