US spot ether ETFs had a strong debut, indicating progress in mainstream acceptance of cryptocurrencies
From Investing.com
July 24, 2024 5:11:06 PM:
U.S. exchange-traded funds (ETFs) tied to the price of ether had a strong debut, with $1.07 billion in shares changing hands, including Grayscale’s Trust, iShares Ethereum Trust, and Fidelity Advantage Ether ETF, among others.
Nine ether ETFs from various companies like Franklin Templeton and Bitwise began trading on Tuesday. This launch follows the success of nine U.S. spot bitcoin ETFs in January, indicating the cryptocurrency industry’s progress in mainstream acceptance.
Although bitcoin ETFs attracted more inflows initially, the introduction of ether ETFs is considered a significant step in cryptocurrency market development, enhancing market legitimacy and stability, according to industry experts.
Ether’s price trended lower on Tuesday, impacting the pricing of new ETFs. Market participants see ETFs as essential in classifying ether as a commodity rather than a security, further boosting the cryptocurrency market’s credibility.
The launch of ether ETFs comes after a decade-long effort by the SEC to approve cryptocurrency ETFs. Ether products are defined as commodity-based trusts, linked to reducing market volatility and enhancing stability.
With fees ranging from 0.19% to 2.5%, ether ETF issuers are competing on costs like their bitcoin counterparts, with waivers being offered for a limited period. Grayscale introduced a “mini” version of its ether ETF with a lower fee structure of 0.15%.
Galaxy Research projects that ether ETFs could attract monthly inflows of $1 billion, impacting investor appetite for digital assets beyond bitcoin. Some investors are concerned about the SEC’s exclusion of the staking mechanism in ether ETFs, limiting their potential.
The SEC’s approval of ether ETFs in May came as a surprise to industry executives who initially had low expectations. Chair Gary Gensler cited the success of Grayscale’s ruling as influencing the approval decision.
Read more at Investing.com: US spot ether ETFs make market debut in another win for crypto industry By Reuters