- SEC approval of Ethereum spot ETFs sparks investor interest, despite price decline.
- Ethereum’s volatile inflows post-ETF launch highlight mixed market sentiment.
- Ethereum ETFs gain traction with $7.54B in assets, representing 2.36% of market cap.
On July 23, 2024, the U.S. Securities and Exchange Commission (SEC) approved the first-ever Ethereum spot exchange-traded funds (ETFs), a momentous event for the crypto sector.
Following the earlier launch of Bitcoin ETFs, this move marks a step forward for crypto advocates and investors, who have eagerly awaited Ethereum’s entry into the ETF market. While the SEC had given initial approval for the 19b-4 filings in May, the ETFs needed the green light for their S-1 filings before being made available to investors.
The announcement sets the stage for the Ethereum ETFs to begin trading in the U.S., opening new avenues for institutional and retail participation in the Ethereum market.
Despite the positive news, Ethereum’s price did not surge. After the ETF approval, Ethereum’s price declined by approximately 2.5%, ending the day at $3,482.00. CoinMarketCap historical data shows that Ethereum opened the day at $3,440.77, with a high of $3,539.53 and a low of $3,395.42, experiencing heavy trading with a volume of over $24 billion.
Ethereum’s market capitalization at the time stood at $418.65 billion, reflecting the mixed sentiment in the market despite the landmark ETF news.
Ethereum ETFs Soar Amid Volatile Inflows
The launch of Ethereum spot ETFs has generated significant interest, but the flow of funds could have been better. According to Sosovalue data, the Total Ethereum Spot ETF Net Inflow saw notable fluctuations from July 23 to August 14, 2024. July 23, the day of the ETF approval, experienced a positive inflow, with net inflows reaching substantial levels.
However, following the initial excitement, the market experienced outflows between July 25 and July 29 as investors reacted to short-term market movements and broader economic conditions.
Total Ethereum Spot ETF Net Inflow
Despite the volatility in daily net inflows, by August 14, total net assets in Ethereum ETFs remained stable at $7.54 billion. On August 13, inflows picked up again, with $24.34 million pouring into Ethereum ETFs, following a $4.93 million inflow the previous day.
Moreover, this renewed interest indicates that the market may be warming up to the long-term potential of Ethereum-based ETFs. As of mid-August, the total net assets represented 2.36% of Ethereum’s total market capitalization, suggesting that these products are gaining traction among investors.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
