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The launch of the first spot Ethereum ETFs in the U.S. stock exchanges on July 23 saw substantial initial trading volumes, with significant inflows totaling $106.6 million. BlackRock’s ETHA and Bitwise’s ETHW were among the top performers, compensating for outflows from Grayscale’s ETHE fund.
Despite the promising start, the following days saw a reversal with increasing outflows. Grayscale’s ETHE experienced significant withdrawals, totaling $326.9 million, $346.2 million, and $356.3 million over three days, overshadowing the inflows of newly launched ETFs.
Market analysts like Eric Balchunas from Bloomberg highlighted the mixed performance of the “new eight” ETFs compared to Bitcoin ETFs. However, the overall volume remained healthy, and the outflows were expected to stabilize.
Ethereum’s price initially dropped from $3,500 to $3,000 amid ETF outflows but managed to recover to around $3,300. This recovery indicates resilience in ETH’s market despite the early setbacks from the ETF launches.
The performance of the Ethereum ETFs and the broader market reaction indicate cautious optimism. Analysts believe that as the initial volatility settles, the ETFs could provide a more stable investment vehicle for Ethereum, enhancing its adoption and market stability.
