Five things you should know about Ethereum ETFs

The United States Security and Exchange Commission (SEC) on Monday approves Ether ETFs to be traded on the floor of the country’s stock exchange. The cryptocurrency exchange traded fund is the second after Bitcoin to be approved and listed in the New York Stock Exchange. Below, we have curated five things you should know about Ethereum ETFs below.

1. Ether ETFs approval 

The spot Ether ETFs were approved in May through the 19b-4 forms by the United States SEC. After such approval, it is necessary for the issuers involved to fill the form S-1 registration statement before the fund can be listed on the US security Exchange.

2. Released date

The S-1 registration statement was approved on July 22, 2024. This occurs on a Monday afternoon and allows the issuers to start trading the fund via the New York Stock Exchange. Spot Ether ETFs will bring interested investors. Such acquisition doesn't mean that these investors own Ether coin but they can benefit from its trading by the issuer through interest earnings to be distributed by brokers to the investors.

3. The first issuers of the Ethereum ETFs

Eight issuers who applied for the spot ETFs started trading the digital currency on Monday. These issuers include: Grayscale, Franklin, VanEck, Bitwise, 21Shares, Fidelity, iShare, and Invesco Galaxy.

4. Trading volume in the first day

On the first day of trading the Ethereum ETFs traded 1.019 billion dollars. Grayscale Ethereum Trust has the highest volume with 456 million dollars which is almost half of the total trading volume. 

5. Forecast

Perfumo forecasted that the net inflow for the new ETFs will be around 750 million dollars to one billion dollars within the first five to six months. However, as stated the trading inflow has surpassed that figure and it was 1.019 billion dollars on the first trading day.