Spot Ethereum ETFs officially begin trading in the United States
The first-ever spot Ethereum exchange-traded funds (ETFs) officially begin trading in the U.S. on Tuesday morning at 13:30 GMT.
On Monday afternoon, the U.S. Securities and Exchange Commission approved the S1 registration statements to go into effect, completing the necessary approvals for the funds that represent Ether, the world's second-largest cryptocurrency after bitcoin, to start trading on Tuesday.
Within 45 minutes of their launch, the trading volume of U.S. spot Ether ETFs exceeded $200 million, according to The Block Pro Headlines on X. The trading volume for these ETFs in the first fifteen minutes was $112 million, as noted earlier by Eric Balchunas, an analyst for Bloomberg ETFs.
Here is a list of the nine issuers that launched their ether ETFs to institutional investors and retail traders, along with their tickers, post-waiver fees, and trading venue:
1. Grayscale Ethereum Trust (NYSE: ETHE), 2.50%
2. Grayscale Ethereum Mini Trust (NYSE: ETH), 0.15%
3. Franklin Ethereum ETF (CBOE: EZET), 0.19%
4. VanEck Ethereum ETF (CBOE: ETHV), 0.20%
5. Bitwise Ethereum ETF (NYSE: ETHW), 0.20%
6. 21Shares Core Ethereum ETF (CBOE: CETH), 0.21%
7. Fidelity Ethereum Fund (CBOE: FETH), 0.25%
8. iShare Ethereum Trust (NASDAQ: ETHA), 0.25%
9. Invesco Galaxy Ethereum ETF (CBOE: QETH), 0.25%
The custodian for eight of the recently approved ETFs will be Coinbase (COIN). According to Fidelity, it is the only issuer with the capacity to self-custody the underlying digital assets for its new investment products.
FactSet reports that since their January launch, Bitcoin ETFs have received net inflows of approximately $17 billion, indicating a historically successful debut. Due to the differences in market sizes and the possibility that Ethereum is less well-known to investors, it is generally anticipated that the Ethereum ETFs will be smaller than the bitcoin funds.
However, as of the time of writing, 90 minutes in, and the trading volume for ETH ETFs exceeded $320 million as against. $610 million for Bitcoin, which is more than 50% according to a post on X by Matthew Sigel, Head of Digital Assets Research at VanEck.
90 minutes in, and now including ETHE:
— matthew sigel, recovering CFA (@matthew_sigel) July 23, 2024
$320M in volumes for ETH ETFs vs. $610M for Bitcoin.
More than 50%!
Ex out ETHE and the total is $187M or 31% https://t.co/xrOZHUxhOs pic.twitter.com/hHY6SziYbf
After the market opened on Tuesday, Ethereum saw a slight decline to $3,450. As anticipated, the news of approval caused the price of the second largest cryptocurrency after Bitcoin to first decline late on Monday.
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