After the success of Bitcoin funds, investors are paying close attention to spot Ethereum ETFs. The Securities and Exchange Commission (SEC) gave the go-ahead for the first nine U.S. spot Ethereum ETFs to go live on national platforms on Tuesday.
These funds give investors access to Ethereum, the second-largest cryptocurrency, in a way that is controlled by institutions.According to James Seyffart of Bloomberg, the ETFs started out with almost $10.3 billion in assets under management (AUM). Most of this funds was in Grayscale products, such as the well-known Grayscale Ethereum Trust (ETHE).
Ethereum ETF Market Competition
Major businesses like BlackRock, Fidelity, and VanEck are all competing to be the best in the spot Ethereum ETF market. Mara Schmiedt, CEO of Alluvial, said that the company could receive more than $20 billion in the first few months after start.
Schmiedt also said that more investment in spot Ethereum goods could make ETH’s price go above $4,878 (its previous high). Ether is selling at $3,400 right now, which is about 28% less than its all-time high.
Schmiedt said that ETF-driven inflows could have a significant impact on the price of ETH because 38% of its supply is locked up in staking, bridges, and DeFi, and another 10% is on retail markets. She also said something about the fact that spot Ethereum ETFs don’t allow staking. She saw this as a possible chance rather than a problem.
According to Schmiedt, Ethereum’s native staking return of about 3.3% is like a fixed income and could draw investors looking for variety and protection against inflation.
