On July 23, Ethereum spot ETFs made their public trading debut in the United States, attracting significant investor interest. Media estimates suggest that the combined trading volume of the first nine Ethereum ETFs surpassed $500 million within hours of opening.
While the trading volume is modest compared to the $4.6 billion seen on the first day of Bitcoin spot ETFs in January, it marks a strong start for ETFs making their debut in the U.S. market. Several Ethereum ETFs are poised to rank among the top 50 U.S. ETFs by first-day trading volume.
As of 12:30 p.m. ET on Tuesday, BlackRock's iShares Ethereum Trust ETF (ticker: ETHA) had reached a trading volume of $119 million, placing it 38th in the U.S. ETF first-day trading volume rankings. Grayscale's Grayscale Ethereum Trust (ticker: ETHE), which converted from an Ethereum trust to an ETF, saw a volume of about $220 million. Bitwise Asset Management Inc.'s Bitwise Ethereum ETF (ticker: ETH) had a trading volume exceeding $64 million.
Trading volume does not necessarily reflect net inflows or outflows, and it might take until Wednesday to get accurate data on net flows for the Ethereum ETFs. Drew Walsh, Vice President of Research and Operations at Roundhill Financial, commented that the target audience for Ethereum ETFs is similar to that for Bitcoin ETFs. These investors are not native to cryptocurrency but are new to the asset class and seek exposure to crypto risk.
Industry analysts had been optimistic about the investment prospects brought by the Ethereum ETF debut. When the U.S. SEC approved related plans for the Ethereum ETF listing in May, experts suggested that the introduction of Ethereum ETFs could significantly boost market demand, leading to a supply shortage of Ether. This shortage could make Ether prices more sensitive to capital inflows, with locked Ether unable to meet the new ETF demand, further tightening supply and driving up prices. The launch of Ethereum ETFs might signal a critical "turning point" before a cryptocurrency price surge.
Matt Hougan, Chief Technology Officer at Bitwise, predicted that Ethereum spot ETFs could attract $15 billion in net inflows within the first 18 months of their listing. Steno Research forecasted that Ethereum spot ETFs could draw $15 billion to $20 billion in inflows within the first year, similar to the amount Bitcoin spot ETFs attracted in seven months.
According to Wintermute, analysts expect Ethereum ETFs to bring in $4.8 billion to $6.4 billion in inflows within a year, with Wintermute's own analysts predicting a lower range of $3.2 billion to $4 billion. Christopher Jensen, Head of Digital Asset Research at Franklin Templeton, noted that investor acceptance of Ethereum ETFs could be faster than Bitcoin ETFs, as many have already had the opportunity to engage with Bitcoin ETFs. The total capital inflow for Ethereum spot ETFs might reach about 30% of that for spot Bitcoin ETFs, given that Bitcoin's market cap exceeds $1.3 trillion, roughly three times that of Ethereum.
