Spot Ethereum Exchange Traded Funds (ETFs) have achieved considerable success in the U.S. market, accumulating over $4 billion in net inflows as of June 24th, just eleven months post-launch. Data from SoSoValue indicates an impressive $100.7 million flowed into these funds in a single day, despite geopolitical fluctuations in the Middle East impacting markets. This surge was primarily led by Fidelity’s FETH fund, which netted $60.5 million, while BlackRock’s ETHA fund collected $25.8 million. Grayscale’s ETHE and ETH products brought in $9 million and $5.4 million, respectively.
Why Have Ethereum ETFs Attracted Such Inflows?
The initial allure of Spot Ethereum ETFs stemmed from their innovative financial structure. Despite the adverse effect of Grayscale’s higher-fee ETHE fund conversion, resulting in $4.3 billion net outflows, without which net inflows would have touched $8.3 billion.
Nate Geraci, President of the ETF Store, stated via social media platform X, “Spot Ethereum ETFs have surpassed $4 billion in cumulative inflows since their launch. Including ETHE’s $4.3 billion outflows, it seems quite successful to me.”
How Do Ethereum ETFs Compare to Bitcoin ETFs?
While Ethereum ETFs posted significant numbers, their performance pales when compared to spot Bitcoin ETFs. Launched in January 2024, Bitcoin ETFs garnered an astounding $34.7 billion in net inflows within the first eleven months, hitting a total of $47.3 billion to date. Just on June 24th, Bitcoin ETFs, captained by BlackRock’s IBIT product, registered $350.8 million in net inflows, continuing a streak of robust performance.
In terms of market share evolution, Grayscale’s ETHE fund’s dominance shrank from 89.7% at launch to 30.2%, partly transferring to their smaller ETH product. BlackRock’s ETHA fund led the pack with a 31.8% stake, followed by Fidelity’s FETH at 18%, with Grayscale’s smaller ETH standing at 15.5%. Notably, Ethereum ETFs in the U.S. market recorded an aggregate trading volume of $89 billion, averaging $840 million daily.
- Grayscale’s ETHE fund’s share declined significantly.
- BlackRock’s ETHA fund now dominates with a leading share.
- Total U.S. spot Ethereum ETF trading has surpassed $89 billion in volume.
Given the current market value of Ethereum at $290.3 billion, which is approximately 13.8% of Bitcoin’s $2.1 trillion market cap, the inflows into these ETFs appear considerably significant. In recent trading, Bitcoin was valued at $105,091, marking a 3.2% increase in 24 hours, while Ethereum was up 6.3% at about $2,403 during the same timeframe.
