Eight different issuers have launched Ethereum ETF trading to institutional investors and individual traders. Ethereum ETFs reached $300 million in trading volume in their first hour on the market. Grayscale Ethereum Trust ETF exits could put pressure on ETH price, an analyst says.
Ethereum ETF trading has started, what does the data say?
As you’ve been following on Kriptokoin.com, sopt Ethereum ETFs officially entered the US stock market on Tuesday morning. It has also already generated significant trading volume. According to Yahoo Finance data, the ETFs achieved a combined trading volume of $205 million in less than an hour. Also, 75 minutes after the opening, the funds reached $300 million in trading volume. Bloomberg Senior ETF Analyst Eric Balchunas provided some insight into the initial numbers:
Here is the volume after the first 15 minutes of trading. A total of $112 million was traded for the group. That’s a ton compared to a normal ETF launch, but only half of the day one volume pace of Bitcoin ETFs, but it would exceed expectations by 50% IMO.
Balchunas noted that this comparison does not include GBTC, and if you add that in, ETH ETFs realize about 20% to 25% of the volume of BTC ETFs. “Regardless, it’s a very solid showing,” he said.
According to Nate Geraci, this is also a success!
The launch of Spot Bitcoin ETFs in January was heralded by many in the industry as the biggest ETF launch ever. The funds saw cumulative trading volume of $300 billion in the first six months, peaking at $61.5 billion in AUM. Nate Geraci, president of The ETF Store, said, “I don’t expect this kind of frenzy around spot Ethereum ETFs. However, even if spot ETH ETFs only attracted 20-25% of the assets of spot Bitcoin ETFs, that would be a pretty successful outcome and I think it’s certainly achievable.”
Grayscale Ethereum Trust exits could put pressure on ETH!
Starting today, US investors will be able to buy Ethereum through spot exchange-traded funds on Nasdaq, the Chicago Board Options Exchange (CBOE) and the New York Stock Exchange. However, Jupiter Zheng, Partner at Hashkey Capital Liquid Fund, emphasized that there is a short-term concern among investors about the Grayscale Ethereum Trust’s high fees, which could trigger a short-term market decline. Zheng said the following on the subject:
There may be a pushback some time after the launch of spot Ethereum ETFs, meaning outflows from Grayscale Ether Trust may reduce market sentiment in a short period of time, like Bitcoin ETFs, investors may shift their funds to lower-fee options.
Ethereum ETF could provide long-term upside for ETH!
Despite a potential short-term sell-off warning, Jupiter Zhang expects Ethereum ETFs to boost long-term demand for ETH by providing an easy entry point for institutional and retail investors who may have previously been locked out. “In our view, Ethereum could reach the $6,000 to $10,000 price range by the end of this year, representing about 1.6x to 2.5x the 52-week high,” Zhang added.
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