Ether ETFs Make Debut on Major U.S. Exchanges: A New Dawn for Cryptocurrency

The first U.S. exchange-traded funds (ETFs) linked to ether, the cryptocurrency second only to Bitcoin, started trading on multiple major exchanges. This milestone represents a significant step for the cryptocurrency industry in its effort to become mainstream. Analysts are cautious about the inflows but predict strong initial interest.

The debut of the first U.S. exchange-traded funds (ETFs) tied to the price of ether, the world's second-largest cryptocurrency after bitcoin, marked a significant milestone for the crypto industry on Tuesday. Ether ETFs from firms like VanEck, Franklin Templeton, Fidelity, 21Shares, and Invesco began trading on Cboe, while BlackRock's product started on the Nasdaq. Additionally, Bitwise and Grayscale Investments launched their own ether ETFs on the New York Stock Exchange.

'This is a real inflection point for the industry,' noted Andrew Jacobson, head of legal at 21Shares. The ether ETFs follow the successful launch of nine U.S. spot bitcoin ETFs in January, further pushing digital assets into the broader financial market. However, analysts predict these products may not see the same volume of inflows as their bitcoin counterparts.

The launch of bitcoin ETFs came after a decade-long battle with the Securities and Exchange Commission (SEC), culminating in a court ruling that forced the agency to approve the products despite market manipulation concerns. According to Morningstar Direct data, these initial bitcoin ETFs attracted $33.1 billion in net inflows by the end of June. Ether ETFs are facing their own hurdles, with fees ranging from 0.19% to 2.5%, but estimates suggest they could attract monthly inflows of $1 billion.

(With inputs from agencies.)