Nurphoto | Nurphoto | Getty Images Spot ether exchange traded funds are set to begin trading on Tuesday . Crypto enthusiasts are hopeful it will broaden the investor base for Ethereum, a blockchain technology many argue has a far wider use case than bitcoin. These ETFs will invest directly in ether, which is the cryptocurrency used in the Ethereum network.
There are already ether ETFs that track futures contracts, but these are the first to track spot ether. Spot ether ETF applications Grayscale Ethereum Mini Trust (ETH) Grayscale Ethereum Trust (ETHE) Bitwise Ethereum (ETHW) VanEck Ethereum (ETHV) 21Shares Core Ethereum (CETH) Invesco Galaxy Ethereum (QETH) Fidelity Ethereum (FETH) Franklin Ethereum (EZET) iShares Ethereum Trust (ETHA) Like the spot bitcoin ETFs that launched in January , most are waiving fees initially — in many cases for up to a year. Bitcoin ETF have been a hit.
Will ether ETFs be the same? By the standards of ETF launches, spot bitcoin ETFs have been a success: They recently topped $17 billion in net flows year to date since their debut. For a new asset class, that is a big hit. However, at $1.
3 trillion in total assets, bitcoin has about three times the value of ether, which has about $414 billion in assets. That may limit the initial appeal of ether ETFs. Bitcoin prices rose going into the launch of spot bitcoin ETFs.
Ether has been a bit spottier: It is up 50% in 2024, but most of the gain came in the first three months of the year. Still, for Ether.