The spot Ethereum ETFs have reached another milestone on the second day of trading, after achieving 20% of the success rate of the Bitcoin ETF on its first day of trading. This positive performance is happening despite lacking some staking features. After recording over a billion dollars on its first trade, it recorded twice the trading volume on the second day.
Some industry experts have been commenting on this development. Bitwise’s Chief Commercial Officer (CCO), Katherine Dowling, commented that the Ethereum ETF could perform better than the Bitcoin ETF, considering the attention it’s getting. This opinion is shared by industry pioneers, including Anthony Pompliano, a popular American technology investor.
The Ethereum ETF recorded $1.05 billion in trading volume on the first day, representing 24% of what was traded on the first day of the spot Bitcoin ETF. In his latest post on X, the president of Bitwise, Teddy Fusaro, said the Ethereum ETF had traded over $852 million in trading volume as of the second half of today.
This is compared to the Bitcoin ETF, which traded around $1.1 billion. Fusaro said he was impressed and surprised by the number of traders and revealed that the Ethereum ETFs are trading at 75% of their current national trading value.
Major Outflows Linked to Grayscale’s Ethereum Trust, Records $113.3 Million
The Ethereum ETF recorded $113.3 million in outflows on the second day and has been linked to the major sell-offs witnessed in Grayscale’s Ethereum Trust. The outflows primarily come from Grayscale’s Ethereum Trust (ETHE), which has seen $326.9 million worth of sell-offs.
Pompliano expressed surprise at the spot Ethereum ETF performance and confessed that he’s impressed it is getting much attention despite needing more hype and the persuasive marketing narrative that came with the Bitcoin ETF.
Grayscale’s ETHE recorded an outflow of $484 million and a $107.8 million inflow on the first day. Recall that the Grayscale fund was launched in 2017, allowing institutional investors to buy into the Ethereum investment, a six-month isolated investment requiring investors to lock up their investments for six months. This was before its conversion to an Ethereum fund on July 22.
BITW and FETH Take the Lead, Reports Major Inflows
With the new adjustment, investors could sell off their holdings easily without undergoing any bureaucratic verification process. Seven Ethereum ETFs out of the eight participating issuers recorded net solid inflows on the second trading day.
However, Bitwise Ethereum ETF (BITW) and Fidelity Ethereum Fund (FETH) took the lead today, reporting $29.6 million and $74.5 million in net inflows, respectively. BlackRock’s iShares Ethereum, which took the lead on the first day of trading, recorded a $17.4 million investment and has remained consistent since July 24.
Grayscale’s ETHE recorded $811 million in outflows so far, indicating that investors have dropped more than 9% of their assets. This major liquidation by investors has exceeded the previous positive inflow witnessed by other new spot Ethereum ETF issuers.
Price of Ethereum Trades Flat After a 6.6% Price Drop
Rubmar Garcia from Bitcoinist explained that the Ethereum ETF’s current performance reflects what was applicable when the spot Bitcoin ETF was launched. During the early days of the spot Bitcoin ETF, six of the first ten trading periods had a cumulative inflow attributed to the outflows seen on the Grayscale Bitcoin Trust ETF.
As of press time, Ethereum is trading at $3,185 on the cryptocurrency market and has exhibited flat price movement in the last 24 hours. Meanwhile, CoinMarketCap data says it had previously experienced a 6.6% decline as of last week.
The trading closed on a negative note on the second day of Ethereum ETF trading. Data from Farside Investors shows that Ethereum ETF witnessed an outflow of about $133.3 million. The ETHE recorded a total outflow of $326.9 million, a negative trend for the previous net flows from the other Ethereum ETFs.