Strong ETF Debut
Two months after approval, nine new spot ETH ETFs began trading in the US last week. On their first day, they attracted $1.1 billion in trade volume. This was about 20% of the first-day trade volume of BTC ETFs. Excluding Grayscale’s conversions of GBTC and ETHE, ETH ETFs’ first-day volume was more than 80% of BTC ETFs’ volume. This indicates significant investor interest, despite lower market participation during summer.
Price Decline and ETHE Outflows
Despite the strong ETF debut, ETH prices fell by more than 6% last week. ETHE outflows negatively impacted market sentiment. Three days after conversion, ETHE saw $1.15 billion in outflows, about 12% of its AUM on launch day. This outflow pace was faster than GBTC, which saw outflows amounting to only 4% of its AUM during its first three days as an ETF.
Market Reactions and Trends
In ETH spot markets, the cumulative volume delta (CVD) diverged between exchanges. A negative CVD indicates net selling, while a positive CVD indicates net buying. ETH saw strong buying on Coinbase and Binance during the US market open. However, selling outpaced buying on OKX, Bullish, and smaller exchanges. This suggests some traders took profit despite the overall positive sentiment from ETF launches.
