Spot Ethereum ETFs Launch Today- Here’s What You Need to Be Informed About
Spot Ethereum ETFs– Today marks a significant milestone as the first-ever spot Ethereum exchange-traded funds (ETFs) begin trading in the U.S. The U.S. Securities and Exchange Commission (SEC) finalized the approval on Monday afternoon, paving the way for these funds representing Ethereum, the world’s second-largest cryptocurrency, to hit the market starting at 9:30 a.m. EST.
Jay Jacobs, BlackRock’s U.S. head of thematic and active ETFs, highlighted Ethereum’s appeal, describing it as a global platform for decentralized applications. Eight issuers are debuting their Ethereum ETFs to cater to both institutional investors and retail traders. Here’s a breakdown of the issuers, their ETF exchange listings, tickers, and post-waiver fees:
- Grayscale Ethereum Mini Trust (NYSE: ETH), 0.15% post-waiver fee
- Grayscale Ethereum Trust (NYSE: ETHE), 2.5%
- Franklin Ethereum ETF (CBOE: EZET), 0.19%
- VanEck Ethereum ETF (CBOE: ETHV), 0.20%
- Bitwise Ethereum ETF (NYSE: ETHW), 0.20%
- 21Shares Core Ethereum ETF (CBOE: CETH), 0.21%
- Fidelity Ethereum Fund (CBOE: FETH), 0.25%
- iShare Ethereum Trust (NASDAQ: ETHA), 0.25%
- Invesco Galaxy Ethereum ETF (CBOE: QETH), 0.25%
Six of these funds will use Coinbase as a custodian, while VanEck employs Gemini, and Fidelity opts for self-custody of Ethereum.
Spot Ethereum ETFs vs. Spot Bitcoin ETFs
While Ethereum ETFs are expected to attract less initial investment compared to Bitcoin ETFs, their launch is still highly anticipated. Estimates suggest initial net inflows of $750 million to $1 billion per month for the first five to six months, aligning with projections from Citigroup indicating between $4.7 billion and $5.4 billion in the first half-year of trading.
In contrast, eleven spot Bitcoin ETFs launched in January have collectively achieved nearly $60 billion in market capitalization and $330 billion in cumulative trading volume. The Ethereum market, however, remains smaller, constituting less than a third of Bitcoin’s size, according to Nate Geraci, president of The ETF Store.
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