The U.S. Securities and Exchange Commission (SEC) has approved the S1 registration statements, paving the way for the launch of the first spot Ethereum exchange-traded funds (ETFs). These ETFs are set to begin trading on Tuesday morning at 9:30 a.m. EST, marking a key moment in the evolution of cryptocurrency investment.
Ethereum ETFs Ready for Market
The launch will see eight Ethereum ETFs introduced by various issuers:
– Grayscale Ethereum Mini Trust (NYSE: ETH), 0.15%
– 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 their custodian, while VanEck will opt for Gemini, and Fidelity will manage its own custody.
Market Implications and Forecasts
While Ethereum ETFs are expected to attract fewer initial inflows compared to their Bitcoin counterparts, their impact remains substantial. Predictions suggest $750 million to $1 billion in net inflows per month for the first five to six months, with Citigroup estimating total inflows of $4.7 billion to $5.4 billion in the first six months.
In contrast, eleven spot Bitcoin ETFs launched in January have accumulated nearly $60 billion in market capitalization and $330 billion in trading volume. The Ethereum spot market, currently less than a third of Bitcoin’s size, is anticipated to capture approximately one-third of Bitcoin ETF demand, with projected assets between $5 and $8 billion in the initial years. Ether is currently trading around $3,474, reflecting a 47% increase year-to-date.
Credit: The Block (Text Excluding Headline)
