YEREVAN (CoinChapter.com) — Ethereum exchange-traded funds (ETFs) are now officially trading on stock exchanges. Initial inflow data shows a significant movement of capital into these new investment vehicles.
Ethereum ETFs Attract $112M in First 15 Minutes, Bitwise Leads
According to Bloomberg senior ETF analyst Eric Balchunas, Bitwise outperformed its competitors during the initial quarter-hour of trading. It recorded $25.5 million in capital inflows. This was second only to Grayscale‘s Ethereum Trust, created in 2017.
In total, the nine Ethereum investment vehicles amassed $112 million in the first 15 minutes of trading. These inflows were higher than those typically seen in traditional ETF offerings. Balchunas noted that while these inflows are about half of what Bitcoin ETFs saw on their first day, they still exceeded expectations.
Despite the strong inflows, the price of Ether (ETH) fell. Ether began the trading day at around $3,540 but soon dropped to a low of $3,426. It then recovered slightly, trading around $3,471.
Ethereum ETF Issuers Compete with Aggressive Fee Strategies
The launch of Ethereum ETFs has sparked fierce competition among issuers. To attract investors, many of the nine issuers have implemented aggressive fee strategies.
For instance, in a July 17 Securities and Exchange Commission filing, 21Shares revealed its plan to waive fees for the first six months of trading. After this period, they will charge a 0.21% management fee.
Similarly, BlackRock has adopted a fee discount structure. They offer a 0.12% initial management fee, which will increase to 0.25% after one year or once the ETF reaches $2.5 billion in assets under management.
Bitwise has taken a unique approach. They pledged 10% of their spot Ether profits to fund Ethereum developers. This partnership with the Protocol Guild, representing over 170 Ethereum builders, is designed to support the ongoing development of the Ethereum network.
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