US spot ether ETFs see net inflows of $106 million on first day
By Suzanne McGee
July 24 (Reuters) -The nine exchange-traded funds (ETFs) tied to the spot price of ether, the world's second-largest cryptocurrency, scooped up net inflows of $106 million on Tuesday as they began trading on U.S. stock exchanges, according to data from CF Benchmarks and several trading firms.
The funds that pulled in most of those assets were sponsored by the same firms that emerged as the biggest winners following January's debut of spot bitcoin ETFs, CF Benchmarks, a digital asset index provider, noted.
BlackRock's BLK.N iShares Ethereum Trust ETF ETHA.O, led the pack with $266.5 million in inflows, closely followed by Bitwise Ethereum ETF ETHW.N, which had inflows of $204 million. The Fidelity Ethereum Fund FETH.Z attracted $71 million in assets.
The Grayscale Ethereum Trust ETHE.PK, which converted into an ETF from a publicly traded trust on Tuesday, launched with more than $9 billion in assets and a fee well above the range of 0.20% to 0.25% of 2.5%. It saw outflows of $484 million, according to CF Benchmarks and traders. That figure is well above the first-day outflows from Grayscale's converted bitcoin ETF in January, which totaled only $95.1 million in spite of the larger size of that bitcoin ETF.
In a note published after the market's close Tuesday, crypto market-making firm Wintermute Trading noted that investors appear to be rotating out of the Grayscale ETF in favor of other, less costly offerings.
A newly launched lower-cost ETF, the Grayscale Ethereum Mini Trust ETH.P, which levies a fee of only 0.15%, may have picked up some of those assets. It saw inflows of $15.1 million on Tuesday.
"The real money interest was strong enough to deem the launch a marginal success," noted Wintermute in its analysis of the initial trading volume of and flows into the new ETFs.
Reporting by Suzanne McGee; editing by David Evans
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
