The SEC has approved the first Ethereum exchange-traded funds (ETFs), a significant milestone for Ethereum and the broader crypto industry. The approval comes with statements from eight issuers on Monday, providing the final sign-off for the first-ever spot Ethereum ETFs to begin trading in the United States at 9:30 a.m. ET Tuesday.
Eight companies in total can currently trade the spot Ethereum ETF. Below are the eight companies, their ticker it will trade on and their waiver fee:
- Grayscale Ethereum Mini Trust (NYSE: ETH), 0.15% post-waiver fee
- Grayscale Ethereum Trust (NYSE: ETHE), 2.5%
- Franklin Ethereum ETF (CBOE: EZET), 0.19%
- VanEck Ethereum ETF (CBOE: ETHV), 0.20%
- Bitwise Ethereum ETF (NYSE: ETHW), 0.20%
- 21Shares Core Ethereum ETF (CBOE: CETH), 0.21%
- Fidelity Ethereum Fund (CBOE: FETH), 0.25%
- iShare Ethereum Trust (NASDAQ: ETHA), 0.25%
- Invesco Galaxy Ethereum ETF (CBOE: QETH), 0.25%
On their first day of trading, ether ETFs produced more than $1.019 billion in total trading activity, according to Yahoo Finance data compiled by The Block Pro Research.
Despite the importance of this news, Ethereum’s market reaction was unexpectedly modest. Following the announcement, Ethereum’s price fell by 1.32%, momentarily reaching $3,422 before settling at $3,475. This reaction, known as the sell-the-news effect, occurs when traders sell assets in response to major news, resulting in a brief price drop. Given the historic magnitude of the SEC’s ruling, many investors and experts were perplexed by the lack of a response.
Matteo Greco, a Research Analyst at Fineqia, speculated that first outflows from existing instruments, such as the Grayscale Ethereum Trust (ETHE), might intensify the selling pressure. ETHE, which has been trading for years with no redemption alternatives for investors, may witness net outflows comparable to those seen with the Grayscale Bitcoin Trust (GBTC) when Bitcoin spot ETFs were introduced. These outflows from ETHE might possibly offset inflows into the new Ethereum ETFs, similar to the trend seen in the Bitcoin market earlier this year.
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