Ethereum ETF Begin Trading In The U.S.

Key Takeaways

• The SEC has approved Ether ETFs.
• Major asset managers like BlackRock and crypto firms like Grayscale are among those launching funds.
• Ether ETFs are expected to attract substantial investment, although less than bitcoin ETFs.

The SEC & Key Players

The U.S. Securities and Exchange Commission (SEC) has approved exchange-traded funds (ETFs) that hold Ether, the native cryptocurrency on the Ethereum blockchain. These ETFs began trading in the U.S. on Tuesday, July 23rd, providing a new vehicle for investors to gain exposure to Ether.

Traditional fund issuers like BlackRock and Fidelity, alongside crypto-specific firms such as Grayscale, are behind the launch of these Ether ETFs. Here are all of the ETFs that are now available:

• ETH (Grayscale Ethereum Mini Trust)
• EZET (Franklin Ethereum ETF)
• ETHV (Vaneck Ethereum ETF)
• ETHW (Bitwise Ethereum Fund)
• CETH (21Shares Core Ethereum ETF)
• FETH (Fidelity Ethereum Fund)
• QETH (Invesco Galaxy Ethereum ETF)
• ETHA (IShares Ethereum Trust)
• ETHE (Grayscale Ethereum Trust)

Six of the funds will use Coinbase as a custodian. VanEck is using Gemini as a custodian, while Fidelity will self-custody its Ether.

Performance and Regulation

Despite Ether being seen as a broader bet on blockchain technology compared to Bitcoin and initial inflows of over $100m in the first 15 minutes of trading, the new ETFs are expected to attract less investment due to the smaller market size and investor familiarity. For context, Bitcoin ETFs, launched in January, have attracted about $17 billion in net inflows. In contrast, some analysts predict that ether ETFs could attract $15 billion in their first 18 months.