Ethereum Spot ETF officially launched trading in the US securities market

On July 23, 2024, at 9:30 AM Eastern Time, the 9 Ethereum Spot ETFs approved by the U.S. Securities and Exchange Commission officially began trading on the U.S. securities market, marking an important milestone in the development of Ethereum digital assets.

These 9 ETFs are listed on the Chicago Options Exchange, NASDAQ, and the NYSE Arca electronic trading platform. Among them, 5 ETFs are listed on the Chicago Options Exchange, while 1 and 3 ETFs are listed on NASDAQ and the NYSE Arca electronic trading platform, respectively.

About 2 hours after opening on the first trading day, the total trading volume of these ETFs reached approximately $434 million. Among them, the one with the highest trading volume was Grayscale Ethereum Trust, with inflows of $177.2 million; the one with the lowest trading volume was 21Shares Core Ethereum ETF, with only $4.69 million.

ETF analysts indicate that the trading volume reached $112 million just 15 minutes after the launch of the Ethereum Spot ETF. This figure is quite substantial compared to regular ETF issuances, but it is only about half of the trading volume on the first day of the Bitcoin Spot ETF.

In terms of price, the VanEck Ethereum ETF opened at the highest price on its first day, reaching $50.06. The Grayscale Ethereum Mini Trust had the lowest opening price at only $3.26, but due to its lower share price, it has become the most traded Ethereum spot ETF currently. The average price of other ETFs ranges between $20 and $30.

It is worth noting that although the Ethereum Spot ETF has started trading, the market performance of Ethereum (ETH) itself has been relatively flat. As of 00:00 Singapore time on July 24, 2024, the daily increase of ETH was only 0.46%, with a market value of approximately $3455.2.

These newly listed Ethereum Spot ETFs have slightly different fee structures. Most ETFs maintain a base fee of around 0.25%, with some offering free periods or fee reductions under specific conditions. For example, the Fidelity Ethereum Fund waives management fees for the entire year of 2024, while the Franklin Ethereum ETF waives fees under specific conditions until January 31, 2025.

It should be noted that these ETFs will not participate in Ethereum staking activities. According to reports, some ETF issuers have sought to add staking features to the ETFs, but this request was rejected by the U.S. Securities and Exchange Commission. This decision is partly based on concerns that the withdrawal time for ETH from the beacon chain may be lengthy, which could affect the timely redemption capability of the ETFs.

Industry insiders generally believe that the launch of the Ethereum Spot ETF marks the beginning of a new era for blockchain digital assets. Investors can now access assets that make up about 70% of the entire digital asset market through low-cost ETFs. Some analysts predict that the inflow of funds into these ETFs could reach $15 billion to $20 billion in the first year, comparable to the inflow of funds into the Bitcoin Spot ETF within 7 months.

This development undoubtedly provides investors with more avenues to access Ethereum and further promotes the mainstreaming of the digital asset market. Over time, the performance of these ETFs and their impact on the overall cryptocurrency market will be worth continuous attention.