The newly launched spot Ether exchange-traded funds (ETFs) in the United States have garnered significant attention, recording around $1.08 billion in cumulative trading volume on their first day. This volume represents approximately 23% of what the spot Bitcoin ETFs achieved on their debut.
Leading the Pack
The converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) dominated trading on July 23, with volumes of $458 million and $248.7 million, respectively. According to Bloomberg ETF analyst Eric Balchunas, the Fidelity Ethereum Fund (FETH) and Bitwise Ethereum ETF (ETHW) followed with $137.2 million and $94.3 million in trading volume. Meanwhile, the 21Shares-issued spot Ether ETF lagged behind, failing to surpass the $10 million mark.
Healthy Market Response
Balchunas described the $625 million in trading volume from the “Newborn Eight” products, excluding Grayscale’s ETHE, as “healthy.” He anticipates a substantial portion of this volume to convert into inflows. Fellow Bloomberg analyst James Seyffart predicts inflows ranging from $125 million to $325 million, depending on the number of investors these firms have lined up.
Comparison to Spot Bitcoin ETFs
In comparison, spot Bitcoin ETFs saw $655.2 million in inflows on their first trading day in January, including a $95 million outflow from Grayscale’s converted Bitcoin product.
Also Read: Grayscale’s Spot Ether ETFs Launch on New York Stock Exchange
Regulatory Approval and Fee Structures
The launch of these ETFs follows the U.S. Securities and Exchange Commission’s approval of the final S-1 forms necessary for the products to trade on the Nasdaq, NYSE Arca, and Chicago Board Options Exchange. Fidelity, 21Shares, Bitwise, Franklin, and VanEck have waived fees on their ETFs for a certain period or until they reach specific net asset thresholds. Post-waiver, most spot Ether ETFs will offer a base fee between 0.15% and 0.25%. ETHE will maintain a higher fee of 2.5%.
BlackRock is offering an initial discounted fee of 0.12% for the first 12 months or until the fund reaches $2.5 billion in net assets, after which the fee will increase to 0.25%. Similarly, the Grayscale Ethereum Mini Trust will start with a 0.12% fee, rising to 0.25% after 12 months or $2 billion in net assets. The Invesco Galaxy-issued spot Ether ETF is set at 0.25%.
