Grayscale and Bitwise In Early Lead as Ethereum ETF Volume Tops $100M

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As a researcher with extensive experience in the cryptocurrency and ETF markets, I am thoroughly intrigued by the massive inflows into newly launched Spot Ethereum ETFs in the United States. In just 24 hours, these offerings have attracted millions of dollars, with Grayscale Investment and Bitwise leading the charge.

In the US, Ethereum ETFs have only been available for a day, yet they’ve already attracted significant investments totaling millions of dollars. Two major investment firms, Grayscale Investment and Bitwise, are spearheading these massive inflows.

Spot Ethereum ETFs Register $112.9M in 15 Minutes

Expert: Eric Balchunas, a senior analyst at Bloomberg ETF, recently posted a snapshot showcasing the initial 15-minute trading performances of nine Ethereum ETFs. The following Ethereum ETF providers were included in this comparison: BlackRock, 21Shares, Grayscale, Franklin Templeton, VanEck, Invesco, Bitwise, and Fidelity.

Based on my extensive experience in the financial industry and knowledge of regulatory filings, I can tell you that Grayscale, a well-known digital asset manager, made headlines recently when they applied to the Securities and Exchange Commission (SEC) for approval to convert their existing Ethereum Trust into what is now known as the Grayscale Ethereum Trust (ETHE). However, an interesting twist emerged when they amended that filing to include plans for a new offering – an Ethereum Mini Trust Exchange-Traded Fund (ETF), also referred to as ETH.

As an analyst, I’ve examined the trading data provided by Balchunas and found that Grayscale’s ETHE holds the top spot with a trading volume of $39.7 million. Following closely is the Bitwise spot Ethereum ETF (ETHW), which recorded an impressive trading volume of $25.5 million within just 15 minutes of its commencement. BlackRock’s ETHA and Fidelity’s FETH trail behind with trading volumes of $22.5 million and $15.2 million, respectively. The combined trading volume for these four Ethereum-based exchange-traded funds (ETFs) amounted to approximately $112.9 million.

As a researcher studying the Ethereum Exchange-Traded Fund (ETF) market, I’ve observed that Grayscale’s ETH version didn’t perform as well as its ETHE counterpart in terms of assets under management. Specifically, the Ethereum Mini Trust ETF managed to attract only $4.5 million worth of investments. In comparison, 21Shares’ CETH had the poorest performance with a mere $0.7 million in trading volume when I gathered the data. However, it’s important to note that Graysale and Bitwise have been dominating the market, while BlackRock is following closely behind.

Grayscale’s Ethereum Mini Trust ETF Fee Slash

As a researcher studying the financial markets, I wouldn’t be surprised by Grayscale’s current market position given their recent reduction in sponsor fees for the Ethereum Trust spinoff, now known as the Ethereum Mini Trust ETF.

Initially, the Ethereum ETF management firm at the investment firm disclosed a high fee structure of 2.5%, which is ten times pricier than all other contenders in the running. The cryptocurrency market was taken aback, trying to fathom the reason for such exorbitant fees. However, Grayscale surprised everyone with the announcement of reduced fees.

The ETH ETF from Grayscale had the lowest cost among its competitors, as it set a fixed fee of 15 basis points and even waived fees on up to $2 billion in inflows for six months or until reaching that amount. This generous offer has significantly boosted the company’s market share.

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2024-07-23 18:29