Ethereum Spot ETFs Debut in U.S. Exchanges, Supported by Major Issuers

Ethereum spot ETFs went live in the U.S., today, i.e July 23, marking a significant milestone for the world’s second-largest cryptocurrency. This development offers professional investors and advisors a new vehicle to invest in Ethereum, integrating digital assets further into mainstream finance.

The new Ethereum ETFs are issued by both traditional fund managers like BlackRock and Fidelity, as well as crypto-specific companies such as Grayscale. 

The U.S. Securities and Exchange Commission (SEC) allowed the S1 registration statements to become effective on Monday afternoon, paving the way for these funds to start trading. Eight issuers have introduced their Ethereum ETFs to institutional investors and retail traders.

Here is a rundown of the issuers and their respective tickers:

• Grayscale Ethereum Mini Trust (NYSE: ETH)

• Grayscale Ethereum Trust (NYSE: ETHE)

• Franklin Ethereum ETF (CBOE: EZET)

• VanEck Ethereum ETF (CBOE: ETHV)

• Bitwise Ethereum ETF (NYSE: ETHW)

• 21Shares Core Ethereum ETF (CBOE: CETH)

• Fidelity Ethereum Fund (CBOE: FETH)

• iShares Ethereum Trust (NASDAQ: ETHA)

• Invesco Galaxy Ethereum ETF (CBOE: QETH)

Six of these funds will use Coinbase as a custodian. VanEck has chosen Gemini, while Fidelity is self-custodying its Ether. 

Market Reactions and Expectations

The launch of these ETFs comes two months after the SEC approved the 19b-4 proposals filed by the three exchanges set to list the products. Issuers finalized disclosure details with the agency to bring the ETFs to market, reflecting a long-awaited unlock for investors seeking easier access to Ethereum.

Industry experts expect that spot Ethereum ETFs will initially see only a fraction of the inflows that Bitcoin funds have experienced. This expectation is partly due to the funds not staking their Ethereum holdings.

Ryan Lee, chief analyst of Bitget Research, predicts that spot Ether ETFs will quickly capture around 2.5% of Ethereum’s market cap, equating to roughly $10.6 billion. Bloomberg analysts Eric Balchunas and James Seyffart estimate that these funds will amass between $5 billion and $6 billion in their first year. Galaxy Digital similarly forecasts that $5 billion will enter the sector over five months.

Others expect slower growth. Steven McClurg, head of U.S. asset management at CoinShares, predicts that spot Ether ETFs will attract just 10% of the inflows seen by Bitcoin funds. Danny Chong, co-founder of Tranchess, suggests that smaller inflows could have a significant impact on the Ethereum market due to its smaller capitalization relative to Bitcoin.

Before the market opened, Bitwise chief investment officer Matt Hougan noted that pre-market trading of the funds was “significantly lighter” than that of Bitcoin ETFs on their launch day. 

Ethereum $ETH is trading sideways over the last 24 hours, and valued at $3456 at the time of writing.