About a year ago, US financial markets witnessed the debut of Spot Ethereum Exchange-Traded Funds (ETFS). This product allowed investors to regulate exposure to the second largest cryptocurrency without holding it.
The past 12 months have been eventful for Spot Ethereum ETFS. It’s from a slow start to run out and now large-scale positive flow with minimal spills. Regardless of the condition of these products, they have played an important role in promoting the adoption of institutional cryptography since their establishment.
How is Spot Ethereum ETFS run?
As reported by cryptopotato At launch, nine products recorded an aggressive tide of $106 million on the first day. Over $484 million outflows from Grayscale’s Ethereum Trust (ETHE) had a major impact on the inflow.
BlackRock’s Spot Ethereum ETF (ETHA) took the lead on its first day with a $266 million inflow and remains on its lead today. Bitwise’s ETHW filed a lawsuit for $204 million, while Fidelity’s Feth raked it for $71 million. Funds from other asset managers, including 21 shares, Invesco, Vaneck and Franklin Templeton, recorded inflows ranging from $13 million to $7.5 million.
Comparing the latest trading day to the debut of the Spot Ethereum ETF, it is clear that these funds have made great strides. On Friday, July 18th, ETFs collected collectively inflows, exceeding $402 million. Interestingly, the numbers aren’t the best the market has seen.
On July 16, Spot Ethereum ETFS accumulated more than $726 million in positive flows, earning the highest aggressive flow ever, according to Coinglass data. The next day, the product recorded its second-largest daily inflow of $622 million. These funds have been a 11-day inflow winning streak starting July 5th, with more than $2.8 billion in flows. BlackRock is the leader in managed assets (AUM) totaling $7.92 billion. Following the lawsuit is ETHE, with AUM of $3.46 billion.
A boring journey
It is worth mentioning that this journey is boring for Spot Ethereum ETFs, especially as the ether performance is low during this cycle. After a solid first day, the next trading day was worried about the ETF. There was a lot of leaks and investors didn’t buy as much ETH as they expected.
Grayscale’s trust continues to see outflow and has not been able to flow into other products. This trend continued, with funds collectively documenting the inflows over several days. In particular, funds broke that record in the 19-day positive flow streak that ended June 12th.
With investors currently investing heavily in ETH, it remains to be seen what the next 12 months will have for the Spot Ethereum ETF.
