Ethereum ETFs Experience Initial Trading Surge
Spot Ethereum (ETH) ETFs saw robust trading volumes on their third day but are experiencing a decline in demand after a strong start.
On Thursday, the cumulative trading volume reached approximately $850 million, according to Yahoo Finance data compiled by The Block Pro Research. This volume followed a peak of over $1.05 billion on Tuesday and $950 million on Wednesday.
Despite strong activity, the ETFs recorded $133.16 million in net outflows on Wednesday, a shift from Tuesday’s $106.78 million in net inflows. Notably, the Grayscale Ethereum Trust (ETHE) registered $326.86 million in net outflows, marking it as the only ether fund experiencing such losses, according to SosoValue.
Prior to Thursday’s trading session, the price of ether dropped by more than 7% overnight.
“The pronounced pullback… is not only unsurprising but expected,” said Keyrock’s Justin d’Anethan to The Block earlier Thursday. “While spot bitcoin ETFs initially pushed prices higher, crypto markets ultimately declined.”
At publication, ether was down nearly 8%, trading at $3,102 according to The Block’s ETH price page. Over the last 24 hours, trading volume for ether was about $25.9 billion.
Bitwise Investment Strategist Juan Leon commented, “After ETPs launch, BTC price was initially depressed due to ‘sell the news’ and large outflows from GBTC. Inflows into other ETPs later surged, causing price increases.”
Leon noted that after two days of trading, ETH has declined nearly 10%. Similar to the Bitcoin case, there have been significant outflows from the Grayscale Ethereum Trust (ETHE), which could persist. He mentioned that ether’s price was elevated in the two weeks leading to the spot ETFs launch.
“Will it play out similarly for ETH? Can’t know for sure, but institutional demand for crypto assets is growing, and ETH has now joined BTC as the only two crypto assets with an ETP wrapper,” Leon stated.
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