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ETH ETFs Got Off to a Great Start But Lacked the Vigor of BTC ETFs

Summary:
As ETH ETFs launched on July 23 with tremendous anticipation, many were anxious about its performance. However, they did great in the eyes of analysts and market observers, raking in about 7 million on their first day of trading. Bloomberg’s James Seyffart left an update on X, “First full day of flows for the ETHness stakes are in. The Ethereum ETFs took in 7 million.” BlackRock’s and Bitwise’s funds led the inflows. “@BlackRock’s $ETHA lead the way with 6.5 million followed by @BitwiseInvest’s $ETHW with 4 million. Very solid first day.” With that, these ETFs registered collective net inflows amounting between 10% to 20% of what BTC ETFs saw on their debut. However, that was not a cause for concern for many. BTC is a better-recognized asset, often referred to synonymously

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As ETH ETFs launched on July 23 with tremendous anticipation, many were anxious about its performance. However, they did great in the eyes of analysts and market observers, raking in about $107 million on their first day of trading.

Bloomberg’s James Seyffart left an update on X, “First full day of flows for the ETHness stakes are in. The Ethereum ETFs took in $107 million.” BlackRock’s and Bitwise’s funds led the inflows. “@BlackRock’s $ETHA lead the way with $266.5 million followed by @BitwiseInvest’s $ETHW with $204 million. Very solid first day.”

With that, these ETFs registered collective net inflows amounting between 10% to 20% of what BTC ETFs saw on their debut. However, that was not a cause for concern for many.

BTC is a better-recognized asset, often referred to synonymously with cryptocurrency. Moreover, its larger market capitalization places it as the frontrunner in the crypto ETF race. ETH ETFs and ETFs of the other assets yet to come will expectedly trail behind. Thus, the performance of these new ETFs, relative to the BTC ones, did not concern the crypto community.

Analysts foresee ETH ETFs pulling in between $1 billion and $2 billion in assets under management (AUM) within the following three months. That estimation is largely possible—BTC ETFs pulled over $12 billion in their first three months.

The first day of trading for the newly launched ETFs signified tremendous interest, especially from the institutional side, as these investors are the first to dive in. With that, the products have set the stage to witness significant inflows in the coming months.

Eric Balchunas, an analyst at Bloomberg reporting frequently on the ETFs, stated, “The New Eight taking in $590m on first day is huge, more than I guessed (the New Nine in btc race did $720m, so Eth was 83% of that). It needed it too bc $ETHE unlock was also bigger than I thought. Either way good to start life in the green at +$106m.”

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