ETH ETFs Hit $500M Volume in Early Trading
Eight different ETH ETFs debuted today, generating more than $500M in volume in the first three hours.
What's the scoop?
- Comparison with Bitcoin ETFs: Bloomberg Senior ETF Analyst Eric Balchunas noted that $ 112M was traded within the first 15 minutes, an impressive figure compared to normal ETF launches, though only about half the volume pace of Bitcoin ETFs on their first day.
- Volume Proportion: When including GBTC, ETH ETFs did about 20% to 25% of the volume of BTC ETFs.
- Initial Predictions: These numbers can also be compared to Kraken’s Head of Strategy’s prediction that the ETFs will generate $750M—$1B in volume for the first six months.
Bankless Take:
Despite falling short of Bitcoin ETFs' day-one performance so far, the ETH ETFs have done exceptionally well compared with traditional ETF launches. The slightly muted volume also aligns with expectations about reduced summertime trading as Wall Street flocks to the Hamptons. All in all, this means there may be more opportunities to buy ETH at a slight discount these coming weeks before the suits return, much like how Bitcoin performed after its ETF launches.
Last update from me today before I head home: The Ethereum ETFs have seen a total volume of nearly $500 million in two hours and 30 minutes.
— Mads Eberhardt (@MadsEberhardt) July 23, 2024
A quick conclusion: Assuming most of the volume of Grayscale's primary ETF is outflow, while considering that most of the remaining… pic.twitter.com/TgDlRyWIHa