Investors’ eyes are fixed on spot Ethereum ETFs as the products debut amidst previous Bitcoin fund success.
On Tuesday, the first nine U.S. spot Ethereum (ETH) ETFs opened for trading on national exchanges following the Securities and Exchange Commission’s (SEC) final approval. Wall Street players and retail investors can now access exposure to Ethereum, a prominent decentralized token, via a regulated institutional framework.
According to Bloomberg’s James Seyffart, the funds debuted with nearly $10.3 billion in assets under management (AUM). Most of that sum is held in two Grayscale products, including the well-known Grayscale Ethereum Trust (ETHE).
Capital entering spot Ethereum products could drive ETH’s price above its previous peak of $4,878. Currently, Ether trades at $3,400, about 28% below its all-time high.
Schmiedt stated, “With roughly 38% of the current ETH supply locked in staking, bridges, and DeFi, and another 10% sitting on retail exchanges, ETF-driven ETH inflows could have a significant upward price impact.”
Alluvial’s CEO predicted that the forthcoming supply shock caused by Ether ETF buying, combined with spot Bitcoin (BTC) ETF success and growing demand for cryptocurrencies, supports a stronger positive outlook for the remainder of this cycle.
Staking was noticeably absent from trading spot Ethereum ETFs, but Schmiedt believes this could present opportunities rather than issues.
