Ethereum ETFs Launch with $112 Million in First-Hour Inflows Despite Ether Price Drop

Ethereum exchange-traded funds (ETFs) have officially begun trading on stock exchanges, attracting considerable interest from investors. Preliminary data from analysts shows that in the first 15 minutes of trading, Ethereum ETFs recorded total inflows of $112 million. According to Eric Balchunas, senior ETF analyst at Bloomberg, this initial success is notable as it represents about 50% of the inflows seen on the opening day of Bitcoin ETFs. Among the various issuers, BitWise excelled in these early moments, securing $25.5 million in inflows, making it second only to Grayscale’s long-standing Ethereum Trust.

Despite the strong performance of Ethereum ETFs in terms of inflows, the price of Ether experienced a decline on the first trading day. Ether started the day around $3,540 but fell to a low of $3,426 before showing some recovery to settle at approximately $3,471. This price movement highlights the volatile nature of cryptocurrencies, even amid significant new market activity related to ETFs. Analysts are observing this situation closely for further developments.

To stimulate interest and attract investors, issuers of these nine Ethereum ETFs have implemented various fee structures. Many have cut or waived fees to draw in more capital. For instance, 21Shares announced plans to waive fees for the first six months, followed by a management fee of 0.21% thereafter. Similarly, BlackRock is promoting an initial management fee of 0.12%, which will rise to 0.25% after a year or once the fund’s assets reach $2.5 billion. Additionally, Bitwise stands out by committing 10% of its profits to support Ethereum developers, indicating a strong backing for the ecosystem’s growth.