By the end of the first day, there were positive inflows of $107 million, despite the Grayscale fund recording outflows of $485 million.
The new Ether funds are from well-known fund issuers like BlackRock and Fidelity, as well as crypto-focused companies like Grayscale. This marks another step in integrating digital assets into mainstream finance.
Ether is the main cryptocurrency on the Ethereum blockchain. While Bitcoin is often seen as digital gold, Ether is viewed as a bet on the growth of blockchain technology and the broader crypto market. On their first trading day, Ether funds saw trading volumes that were 23% of what Bitcoin funds achieved on their first day 7 months ago.
Unlike some other crypto investments, Ether ETFs do not offer staking, a process that can provide extra yield for investors. Many of the Ether funds launching this week have temporary fee waivers to attract clients. Once these waivers end, management fees will range from 0.15% to 2.50%.
Grayscale is converting its large private Ether fund into two ETFs with different price points, offering both the cheapest and most expensive options among the new funds.
