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Ethereum Spot ETF officially launched, with a first-day trading volume exceeding 400 million USD.
Ethereum Spot ETF officially launched for trading on the US securities market
On July 23, 2024, at 9:30 AM Eastern Time, 9 Ethereum Spot ETFs officially began trading on the U.S. securities market. These ETFs are listed on the Chicago Board Options Exchange, the Nasdaq, and the NYSE Arca electronic trading platform.
The Ethereum ETF products listed on the Chicago Options Exchange include those from 21Shares, Fidelity, Franklin, Invesco Galaxy, and VanEck. The Nasdaq Exchange lists BlackRock's iShares Ethereum Trust. The New York Stock Exchange Arca platform lists Grayscale, ProShares, and Bitwise's Ethereum ETFs. In addition, the U.S. Securities and Exchange Commission has also approved Grayscale's conversion of its existing Ethereum trust into a Spot ETF.
About 2 hours after the first trading day opened, the total trading volume of these ETFs reached $434 million. Among them, Grayscale's products had the highest trading volume at $177.2 million, while 21Shares' products had the lowest trading volume at $4.69 million.
According to reports, ETF analysts stated that the total trading volume of the Ethereum Spot ETF reached $112 million within 15 minutes of starting trading. Although this figure is significant, it is only about half of the trading volume of the Bitcoin Spot ETF on its first day.
The opening price differences among the ETFs are quite large. VanEck's product has the highest opening price at $50.06, while Grayscale's Mini Trust has the lowest opening price at only $3.26. The average price of other products ranges between $20 and $30.
Despite the start of ETF trading, the price performance of Ethereum has been relatively flat. As of 12:00 AM Singapore time on July 24, the daily increase of ETH was only 0.46%, with a price of approximately 3455.2 USD.
These ETFs have differences in fees. The base rate for most products ranges from 0.2% to 0.25%, and some products also offer fee reductions for a certain period. It is worth noting that Grayscale's product has the highest fee, reaching 2.5%.
Regarding the ETH staking issue, none of these ETFs will participate in staking. According to reports, some institutions have attempted to obtain staking permissions but were rejected by regulatory authorities. This may be due to concerns about redemption timeliness.
Industry insiders believe that the launch of the Ethereum Spot ETF marks the entry of blockchain assets into the ETF era, providing investors with a more convenient way to access them. Research institutions predict that these ETFs may attract between 15 billion to 20 billion dollars in inflows in the first year, potentially matching the performance of the Bitcoin ETF over a period of 7 months.