he first Ethereum ETFs hit the market leading to new channels into the second-largest cryptocurrency for investors. That enthusiasm did not last, however, as the funds saw assets under management fall during their second day of trading. By comparison, only some providers of Bitcoin ETFs grew with continued demand.
Performance of Ethereum ETF Varies
Ethereum ETFs saw a decline on the second day of trading. Simultaneously, Fidelity FETH gained $74.5 million, and BlackRock ETHA had a $17.4 million AUM boost. Bitwise ETHW and Vaneck’s ETHV have accumulated $29.6 million and $19.8 million, respectively. There were also slight rises in Franklin EZET and Invesco QETH according to data from Farside.
However, outflows outpaced inflows as Grayscale's ETHE offering declined by $326.9 million. The smallest of its ETH ETF grew by $45.9 million, suggesting some investors swapped between vehicles. Overall, Ethereum shed about $133 million across its investment options.
Bitcoin ETFs Attract Additional Capital
A number of Bitcoin ETFs saw modest growth, with BlackRock's IBIT being the leader at just a $66 million increase. FBTC by Fidelity grew just over $1 million and ARK, as well as Invesco's new funds collected around 3M each; The only fund to lose assets was WisdomTree's BTCW, which saw $26.2 million in outflows according to Farside Investors.
Bitcoin products continue to serve as an asset class, bringing in $44.5 million of new investments into the market. This is in contrast to the broader outflows from Ethereum and suggests that investors still favor the more established cryptocurrency when using regulated portfolio products. The performance gap is likely to affect asset allocations between the two sectors.
