Ether exchange-traded funds (ETFs) began trading in the U.S. on Tuesday, introducing a new investment option for those interested in the world’s second-largest cryptocurrency. Despite high expectations for a price surge, Ether’s market response was underwhelming.
On the launch day, Ether’s price fell nearly 4% to $3,300, marking its lowest point in two weeks. This decline might be attributed to a “buy the rumor, sell the news” scenario, where the anticipated launch was already factored into the market, leading short-term investors to cash in their gains.
The drop in Ether’s value also mirrored a broader decline in the U.S. stock market. The Nasdaq Composite Index tumbled 3.6%, and the S&P 500 dropped 2.1%, driven by disappointing earnings reports from major companies such as Alphabet (NASDAQ: GOOGL) and Tesla (NASDAQ: TSLA). In contrast, Bitcoin remained relatively stable, holding around the $66,000 mark.
The newly launched Ether ETFs collectively traded over $1 billion on their first day. Among these, BlackRock (NYSE: BLK)’s iShares Ethereum Trust (ETHA) led with a trading volume of $240 million, followed by the Fidelity Ethereum Fund (FETH) with $136 million.
In comparison to the $4.66 billion traded on the first day of Bitcoin ETF trading in January, Ether ETFs’ trading volumes were about 21% of that figure. Nonetheless, the spot Ether ETFs demonstrated more activity than the futures-based Ether ETFs, which experienced limited trading upon their introduction in October.
Since their January launch, Bitcoin ETFs have seen approximately $17 billion in net inflows, reflecting a strong debut. Ether ETFs, however, are anticipated to be smaller in scale due to the differing market sizes and levels of investor familiarity. Bitcoin is often likened to digital gold, whereas Ether is seen as a play on blockchain technology and the broader cryptocurrency sector.
Looking ahead, traders are now focusing on upcoming U.S. economic data releases scheduled for Friday and former President Donald Trump’s speech at the Nashville Bitcoin conference on Saturday.
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