As a seasoned crypto investor with years of experience in the market, I have witnessed the ebb and flow of trends and the launch of various products that have shaped the crypto landscape. The recent launch of ETH ETFs on July 23 was met with great anticipation and excitement within the community.
Upon the highly anticipated launch of ETH-focused ETFs on July 23rd, there was considerable apprehension regarding their potential performance. Yet, these ETFs exceeded expectations according to analysts and market spectators, amassing approximately $107 million in revenue during their inaugural trading day.
James Seyffart from Bloomberg reported an update on Ethereum ETF inflows: “The initial day of investments in Ethereum-linked ETFs has concluded, with approximately $107 million poured in. BlackRock’s and Bitwise’s funds dominated the investments, bringing in $266.5 million and $204 million respectively, marking a strong start.”
These ETFs experienced collective net inflows ranging from 10-20%, which is a significant amount when compared to the inflows seen during the debut of Bitcoin ETFs. Nevertheless, this did not alarm many investors.
Bitcoin, which is widely known as a leading cryptocurrency, outranks others due to its larger market value. Consequently, when it comes to crypto Exchange-Traded Funds (ETFs), those based on Bitcoin are anticipated to lead the way, with Ethereum and other assets’ ETFs likely following behind. Therefore, the crypto community generally pays less attention to the relative performance of new ETFs compared to those based on Bitcoin.
Experts predict that Ethereum-based ETFs could manage between $1 billion and $2 billion in assets within the next quarter. This projection is plausible considering Bitcoin ETFs amassed over $12 billion during their initial three months.
On the initial trading day for the newly debuted ETFs, there was a great deal of enthusiasm, particularly among institutional investors. These heavyweight investors were among the first to jump in, indicating strong potential for substantial investments in the near future. Consequently, these products have paved the way for potential large-scale inflows over the next few months.
Eric Balchunas, a Bloomberg ETF analyst, expressed, “The New Eight raised an impressive $590 million on its debut day, surpassing my expectations. This is larger than the $720 million raised by the New Nine in the Bitcoin race, implying that Ethereum accounted for about 83% of that figure. Given the larger-than-anticipated unlocking of $ETHE, this strong start was necessary.”
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2024-07-25 15:32