On July 23, 2024, at 16:30 Moscow time in the United States, the first trading of shares of spot exchange-traded funds (ETF) for the second cryptocurrency, Ethereum, began, reports RBC Crypto.
The US Securities and Exchange Commission (SEC) approved the launch of spot ETFs based on Ethereum and trading of their shares on July 22. However, the news had virtually no effect on Ethereum quotes. As of 16:30 Moscow time, July 23, the Ethreum rate to the USDT stablecoin on the Binance cryptocurrency exchange was $3,506 thousand with a capitalization of $421 billion.
A total of nine issuers have launched Ethereum ETFs on the Chicago Board Options Exchange (CBOE) and the New York Stock Exchange (NYSE). Among them are management companies that have been trading Bitcoin ETF shares since January: Blackrock, Franklin Templeton, VanEck, Bitwise.
Stock tickers for funds:
ETHA: iShares Ethereum Trust ETF (BlackRock fund)
CETH: 21Shares Core Ethereum ETF
ETHW: Bitwise Ethereum ETF
FETH: Fidelity Ethereum Fund
EZET: Franklin Ethereum Trust
QETH: Invesco Galaxy Ethereum ETF
ETHV: VanEck Ethereum ETF
ETHE: Grayscale Ethereum Trust
ETH: Grayscale Ethereum Mini Trust
Ethereum ETF trading volume exceeded $110 million in first 15 minutes, ETF market analyst says Bloomberg Eric Balchunas: That’s a huge number compared to how many asset-based ETFs launch on average, he said, but it’s about 50% smaller than what the Bitcoin ETF launched in January.
Experts predict that net inflows into Ethereum ETFs will be between $750 million and $1 billion per month during the first six months after launch. By comparison, 11 Bitcoin spot ETFs have attracted a total of $60 billion, and Bitcoin ETF stock trading volume over the past six months was $330 billion.
President of The ETF Store Nate Heratsi predictsthat demand for Ether ETFs will be about a third of demand for Bitcoin ETFs.
According to calculations by Eric Balchunas from Bloombergthe assets of the Ethereum ETF will amount to 15% of the value of assets of similar Bitcoin ETFs, approximately $5-8 billion.
One of the largest market makers in the cryptocurrency market is Wintermute. predictsthat the Ethereum spot ETF will attract up to $4 billion in capital next year, and the price of ETH will increase by 24% in the next 12 months. Since the beginning of the year, Ethereum has risen by 53%.
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Source: Cryptocurrency
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