The #Ethereum #ETF (exchange-traded fund) debut in the United States yesterday saw net inflows of $106.6 million, but the additional capital has not reflected in ETH’s price yet

Over the past 24 hours, the Ethereum price slipped 0.3% to trade at 3,445.77 at press time, according to CoinGecko data.

BlackRock and Bitwise Lead the Ethereum ETF Inflows

Leading the charge were BlackRock and Bitwise, whose ETFs garnered impressive initial interest. BlackRock’s iShares ETF (ETHA) led with $266.5 million in net inflows, followed closely by Bitwise’s Ethereum ETF (ETHW) which secured $204 million. Fidelity’s Ethereum Fund (FETH) rounded out the top three, attracting $71.3 million.

Despite these positive inflows, the transition of Grayscale’s Ethereum Trust (ETHE) to a spot ETF format prompted considerable outflows. ETHE, which originally allowed institutional investors to buy $ETH with a six-month lock-up period, saw outflows of $484.9 million, equivalent to 5% of the fund that once boasted $9 billion. This significant outflow can be attributed to the newfound flexibility for investors to sell their shares more easily post-conversion.

This trend mirrors the situation in January when the launch of spot Bitcoin ETFs led to over $17.5 billion in outflows from Grayscale’s Bitcoin Trust (GBTC).

Grayscale’s Ethereum Mini Trust, a lower-fee spinoff product, managed to attract $15.2 million in new inflows, suggesting continued interest in more cost-effective investment vehicles. Franklin Templeton’s fund (EZET) and 21Shares’ Core Ethereum ETF (CETH) also performed well, netting $13.2 million and $7.4 million, respectively.

In total, the new spot Ethereum funds generated a cumulative trading volume of $1.08 billion on their first day, amounting to 23% of the volume seen by spot Bitcoin ETFs on their debut.

The mixed reactions in the market, evidenced by both substantial inflows into new ETFs and significant outflows from Grayscale’s established trust, highlight a pivotal moment for Ethereum investments. Traders and analysts suggest that Ethereum remains undervalued and anticipate that the introduction of a spot Ethereum ETF could drive new highs, reflecting growing institutional interest and broader market adoption.

As the market continues to adjust to these new financial products, the performance of ETH ETFs will be closely monitored by investors and analysts alike, with expectations of increased liquidity and investment flexibility potentially fueling further developments in the cryptocurrency space.