Ethereum Spot ETF officially launched trading in the United States, digital assets usher in a new milestone

On July 23, 2024, an important moment arrived in the U.S. securities market as 9 Ether Spot ETFs officially began trading. This marks a significant milestone in the development history of the Ethereum digital asset.

These ETFs are distributed across different exchanges:

1. CBOE Exchange listed 5 ETFs:

   • 21Shares Core Ethereum ETF (CETH)
   • Fidelity Ethereum Fund (FETH)
   • Franklin Ethereum ETF (EZET)
   • Invesco Galaxy Ethereum ETF (QETH)
   • VanEck Ethereum ETF (ETHV)

2. The Nasdaq Stock Exchange has listed 1 ETF:

   • BlackRock's iShares Ethereum Trust (ETHA)

3. The NYSE Arca electronic trading platform has listed 3 ETFs:

   • Grayscale Ethereum Mini Trust (ETH)
   • ProShares Ethereum ETF (EETH)
   • Bitwise Ethereum ETF (ETHW)

In addition, regulators have approved the conversion of Grayscale Ethereum Trust (ETHE) into an Ethereum Spot ETF.

In the first trading day, within about 2 hours, the total trading volume of these ETFs reached approximately $434 million. Among them, the trading volume of Grayscale Ethereum Trust was the highest, reaching $177.2 million, while the trading volume of 21Shares Core Ethereum ETF was the lowest, at $4.69 million.

According to reports, ETF analysts stated that the total trading volume of the Ethereum Spot ETF reached $112 million 15 minutes after it began trading. This figure, while impressive, is only about half of the trading volume of the Bitcoin Spot ETF on its first day.

In terms of price, the VanEck Ethereum ETF opened at the highest price of $50.06, while the Grayscale Ethereum Mini Trust opened at the lowest price of only $3.26. The average price of other ETFs ranges between $20 and $30.

Despite the launch of ETF trading, the price performance of Ethereum has been relatively flat. As of July 24, 2024, 12:00 AM (Singapore time), the daily increase of ETH is 0.46%, with a market capitalization of approximately $3455.2.

There are differences in the fee structures of these newly listed ETFs. Most ETFs have a base fee rate between 0.2% and 0.25%, but some offer a free period or fee reductions under specific conditions. For example, the Fidelity Ethereum Fund has no management fees for the entire year of 2024, and the Franklin Ethereum ETF waives fees on the first $10 billion in assets until January 31, 2025. It is worth noting that the Grayscale Ethereum Trust has a fee rate of 2.5%, significantly higher than other ETFs.

Regarding the issue of ETH staking, it has been reported that regulators have denied requests from some institutions to include staking in their ETFs. This is mainly because withdrawing Ether from the beacon chain typically takes several days, while ETF issuers need to be able to redeem ETF shares in a timely manner.

Insiders generally believe that the launch of the Ethereum Spot ETF marks a new development stage for blockchain digital assets. Research institutions predict that the fund inflow for these ETFs could reach between 15 billion to 20 billion dollars in the first year, equivalent to the fund inflow of the Bitcoin Spot ETF in 7 months.

With the launch of these ETFs, investors can now participate in the digital asset market in a more familiar and convenient way, which will undoubtedly bring new opportunities and challenges to Ethereum and the entire cryptocurrency ecosystem.