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Ether ETFs struggle on debut

The first U.S.-listed ether exchange-traded funds opened with slight losses despite a minor rise in ether price.

July 23, 2024 at 02:33 PM

Spot ether ETFs trade slightly in the red in long-sought market debut

The first U.S.-listed Ethereum exchange-traded funds stumbled on their market debut.

Spot ether ETFs debut facing slight losses

On their debut Tuesday, the first U.S.-listed spot ether exchange-traded funds were traded in negative territory. Despite the slight rise in the price of ether, which edged up 0.8% to $3,470, funds like the Grayscale Ethereum Mini Trust and others showed losses between 0.2% and 4.2%. This comes after the U.S. Securities and Exchange Commission approved these ETFs, allowing broader access to ether for both retail and institutional investors. Analysts predict that while trading volumes may increase over time, the initial inflows will likely not match those seen with spot bitcoin ETFs.

Key Takeaways

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First U.S.-listed ether ETFs faced slight losses on debut.

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Ether price rose slightly despite ETF performance.

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Analysts predict lower initial inflows compared to bitcoin ETFs.

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Mainstream acceptance for cryptocurrencies progresses with ETF approvals.

"The full impact of ETF approvals on the market may not be fully realized until six to nine months later."

Konstantin Shulga warns that the market effects of ETF approvals take time to manifest.

"Despite being smaller than bitcoin ETFs, ether inflows will still have a significant performance effect."

Chanchal Samadder emphasizes potential but cautious optimism for ether ETF inflows.

The introduction of ether ETFs marks a pivotal moment for the cryptocurrency market, indicating growing acceptance among mainstream financial products. However, analysts caution that enthusiasm might be tempered by lower initial investor interest compared to bitcoin ETFs. With expectations of about $1.65 billion in potential inflows for ether ETFs, the gradual integration of these investment products might show results slowly, emphasizing the need for patient investment strategies in this evolving landscape.