Over $1 Billion in Trading Volume for Ethereum ETFs in Day One
Yesterday, previously approved Ethereum ETFs got cleared for trading by the SEC.
The Ethereum ETFs started trading on the second day of the second decade of Ethereum's history, since Ethereum was launched on July 22, 2014... Quite a symbolic date was chosen to start trading of these ETFs, wouldn't you say?
During this first day, over 1bn dollars were traded in and out of the ETFs, but with only a little above 100m net flow positive. As in the case of Bitcoin ETFs, Grayscale ETF (the big one of the two) is bleeding out and the other ETFs are absorbing their holdings.
Compared to Bitcoin spot ETFs in their first day, Ethereum spot ETFs had a 4.6x lower trading volume. It pays off to be first in the market and to launch in January instead of July, huh?
Compared to any other non-crypto ETFs, both Bitcoin and Ethereum based spot ETFs started really strong.
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The market received the event with a slight "sell the news" attitude, similar to what happened when the Bitcoin ETFs started trading. In bitcoin's case, 2 weeks of selloff period followed, then 2 months of strong bull action.
I don't see the pattern repeating, since September is generally a bad month for crypto, so I am curious how the market plays this event. Maybe it'll be a similar pattern, but compressed in time, until the end of August, beginning of September? I don't see the market going flat until October. So, maybe we will have a strong but short term uptrend led by Ethereum, and then a correction in September.
I continue to see these spot ETFs and other products created by traditional financial businesses and digital businesses which operate in the Web 2 world as a gateway to main adoption but also a serious detour from the original ideals in crypto and likely a potential threat to the space and some of the elements that define parts of it: decentralization, censorship resistance, DAOs, etc.
But I see many embrace this, so we will see what the future holds for us...
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Long ETH.
Long BTC.
For those that want to see what happens if you owned Grayscale (ETHE) before and after the spin-off, I covered that also in my post https://peakd.com/hive-167922/@solving-chaos/week-30-july-24-investment-moves
The ETH ETF is a big win to the crypto community. I’m not shocked about WTH high trading volume
It is expected
Yes, high trading volume was expected. It was also expected to not be as high as bitcoin's ETFs.
I heard about a bull run coming in less than two weeks. I learnt it is going to be massive and a big one at that…
It could be. But a bull run started in August could mean it will peak at the end of the month or beginning of September and then there will be a pullback.
The first day's trading volume for Ethereum ETFs shows strong interest. I'm pretty curious to see how this trend unfolds though
While funds move away from ETHA (Grayscale) often into other ETFs, there will be a high trade volume, but not much outside money coming in, necessarily.
Well said brother
I don't hold much ETH, mostly stick to BTC but it's good to see there is more interest in crypto from a broader market. Sure all these new investors are mainly in it for the gains but perhaps at least a few will explore ETH and other coins further and find something they didn't see before.
Yep, we can always hope ETFs are only a gateway into crypto and at least part of the new investors will look further than the ETFs into the support coins and broader in the crypto space.
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STOPAll roads leds to September, as you've said, it's generally not a good month for crypto. I'm not overly excited about the eth ETF, might be all good and all that, but I just don't feel anything towards it.
Yeah, I'm not really excited about them either. But it is a milestone many will consider as a reference in the future for ETH.
Also it definitely feels bullish, so anything for the market.
Maybe a little later. Looks like we'll have a short pullback period.
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BTC was the first mover and I think people feel safer with BTC over ETH. After all, there are a lot of people who consider BTC as digital gold. ETH on the other hand doesn't have that view with others so I think that leads to less people getting involved. Either way, we can't control the market so I will just sit down and watch it move without doing much.
Yep, it surely looks the Grayscale outflows dictate the direction and affects the rest of the market too. Much like it happened with Bitcoin ETFs too, but there the ETFs found a balance on the buying side. We'll see what happens for Ethereum.
Definitely symbolic I think. Perhaps it's also a coincidence. I read somewhere that the Crypto ETFs could also be a way to incentivize new users to later dive deeper into the space and discover what's about, especially when they experience outsized returns on their portfolio. I'm not too certain about that though, but I guess also there is the good and bad aspect of Crypto ETFs.
That is the thinking, but when ETFs are easier, few will jump into the real assets to understand and use them instead.
Right, we tend to default easily into our comfort zones, choosing the path of least resistance and sticking with it.
It will be interesting to see what Sept. brings this time around. One billion is still impressive though! Part of the problem ETH will have is it's not BTC, and unless the investor is crypto savvy they might go with the name they know. ETH ETF's may actually make it's price a bit more volatile as stop loss levels are hit and we could see massive sell offs...
I believe we're going through a "sell the news" period. It was rough for bitcoin for two weeks too, after its ETFs started trading. The Grayscale ETF will continue to bleed as it did for Bitcoin, and the question is if there will be enough demand on the other side.
Since BlackRock has their BUIDL tokens and fund built on Ethereum, I imagine they'll be pretty interested in the chain.