In a landmark move for the cryptocurrency market, nine Ethereum spot exchange-traded funds (ETFs) amassed an astonishing $112 million in trading volume within the first 15 minutes of trading, following the U.S. Securities and Exchange Commission’s (SEC) approval on Monday. The approval marks a significant milestone for Ethereum, echoing the success of Bitcoin ETFs introduced earlier this year.
The SEC greenlit the registration statements of nine Ethereum ETFs, effective as of July 22. The approved issuers include prominent names such as Invesco & Galaxy, Fidelity, 21Shares, Franklin, BlackRock, Grayscale, Bitwise, VanEck, and Grayscale Mini ETF. This approval follows multiple amendments to issuers’ S-1 applications, reflecting a rigorous review process that began with initial approvals in late May.
Entering the Era of Ethereum ETFs
The introduction of Ethereum ETFs signifies a new era for crypto investments, making Ethereum accessible to traditional investors through their regular brokerage accounts. “We’ve now fully entered the exchange-traded funds era of crypto,” stated Matt Hougan, Chief Investment Officer at Bitwise.
Ethereum ETFs have drawn significant attention and capital inflows, mirroring the successful debut of Bitcoin ETFs, which have garnered tens of billions in investment since January. According to Bloomberg’s senior ETF analyst Eric Balchunas, the rapid accumulation of $112 million in trading volume within 15 minutes of launch is a substantial feat, though it represents about half the pace seen on Bitcoin ETFs’ first day.
Here's volume after first 15 minutes of trading. Total of $112m traded for the group (which is A TON vs a normal ETF launch but only about half of what bitcoin ETFs' volume pace was on DAY ONE, altho 50% would exceed expectations IMO). Also Bitwise outperforming early. pic.twitter.com/RoN9J1VoP1
— Eric Balchunas (@EricBalchunas) July 23, 2024
Breakdown of Initial Trading Volumes
Leading the trading surge, Grayscale’s ETHE recorded $39.7 million in volume, followed by Bitwise’s ETHW at $25.5 million. BlackRock’s ETHA and Fidelity’s FETH also showed robust activity, with $22.5 million and $15.2 million in trading volume, respectively. Other ETFs, including those from VanEck, Invesco, Franklin, and 21Shares, saw more modest volumes, each below $5 million at the time of reporting.
The swift uptake of Ethereum ETFs underscores growing investor interest and the potential for substantial growth in crypto ETFs, setting the stage for a dynamic and accessible investment landscape in the cryptocurrency market.
