The crypto market reached a milestone on July 23 with the launch of nine spot Ethereum ETFs, sparking strong interest from investors. These ETFs achieved significant initial inflows, reflecting optimism from the market.
Nine major financial players, including Grayscale, BlackRock, and Fidelity, rolled out ETFs after clearing significant regulatory hurdles.
Despite early enthusiasm, the funds saw $341 million in outflows by July 26, highlighting market volatility.
Grayscale Ethereum Mini Trust:
Grayscale’s Ethereum Mini Trust on NYSE, ticker ETH, has a 0.15% management fee, waived to 0% for six months for up to $2 billion AUM. Coinbase acts as custodian. First-day inflows totaled $15.1 million, with $164 million overall.
Grayscale Ethereum Trust:
Grayscale’s older Ethereum Trust, now an ETF, charges a 2.5% fee. Substantial outflows of $484.1 million on the first day and a total of $1.5 billion have affected its performance. Coinbase is the custodian.
Franklin Ethereum ETF:
Franklin Templeton’s Ethereum ETF on CBOE, ticker EZET, charges a 0.19% fee, waived to 0% until January 31, 2025, for the first $10 billion. First-day inflows reached $23.3 million. Coinbase is the custodian.
VanEck Ethereum ETF:
VanEck’s Ethereum ETF on CBOE, ticker ETHV, charges 0.20% but waived to 0% through July 2025 for the first $1.5 billion. Gemini is the custodian. First-day inflows were $7.6 million, totaling $35.4 million.
Bitwise Ethereum ETF:
Bitwise’s Ethereum ETF on NYSE, ticker ETHW, has a 0.20% management fee for the first $500 million, set at 0% for six months. Inflows on the first day were $204 million, totaling $265 million. Coinbase is the custodian.
21Shares Core Ethereum ETF:
21Shares’ ETF on CBOE, ticker CETH, charges a 0.21% fee. Coinbase is the custodian. First-day inflows totaled $7.5 million, with no additional inflows since.
Fidelity Ethereum Fund:
Fidelity’s ETF on CBOE, ticker FETH, charges 0.25% but no fee until year-end. Fidelity self-custodies ETH. First-day inflows reached $71.3 million, totaling $219 million.
iShare Ethereum Trust:
BlackRock’s ETF on NASDAQ, ticker ETHA, charges a 0.25% sponsor fee, reduced to 0.12% for the first year. First-day inflows were $266.5 million, totaling $442 million. Coinbase is the custodian.
Invesco Galaxy Ethereum ETF:
Invesco’s ETF on CBOE, ticker QETH, charges 0.25%. Coinbase is the custodian. First-day inflows were $5.5 million, totaling $14.2 million.
Coinbase at an advantage:
Coinbase is the custodian for most new ETFs, offering secure Ether storage and a stable income stream. This has boosted Coinbase’s share price, nearly doubling in six months.
The road ahead for spot ETH ETFs:
Bloomberg analyst Eric Balchunas noted high trading volumes for ETFs like ETHA and FETH. Bitwise’s CIO Matt Hougan predicts $15 billion in net flows within 18 months, signaling strong investor interest.
While initial signs are promising, market conditions can change. Investors should trade cautiously and never exceed their risk tolerance.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
