It’s been a historic week for the cryptocurrency market, with a spot Ethereum exchange-traded fund making its debut.
Franklin Templeton was one of nine spot ether ETF applicants approved by the U.S. Securities and Exchange Commission on Tuesday.
The company is behind the Franklin Ethereum ETF (EZET), whose shares have fallen about 10% since its inception as of Thursday’s close. Losses triggered by cryptocurrency sell-off.
“We think they’re going to be popular. Whether they’re going to get the same amount of assets … is probably unlikely,” David Mann, the company’s head of ETF products and capital markets, told CNBC’s “ETF Edge” on Tuesday. “But it’s still great.”
The VanEck Ethereum ETF (ETHV), owned by global investment management firm VanEck, also received approval.
CEO Jan Van Eck expects spot Ethereum ETFs to help investors diversify, but he believes the energy levels of spot Ethereum ETFs are different.
“I don’t think they will be hit in the same way as spot Bitcoin ETFs,” Van Eck said.
His new fund has also fallen sharply since Tuesday.
Over the long term, Morningstar’s Ben Johnson believes that spot Ethereum ETF trading volumes are normal because they are roughly proportional to Ethereum’s relative market cap. Bitcoin.
“There’s a healthy appetite. There’s healthy volume. There’s healthy demand there,” said the research firm’s head of client solutions. “(ETFs) open opportunities for investors to enter new markets, provide investors with new investment opportunities and package them into cost-effective packages that are convenient and compatible with the way more investors structure their portfolios.
ether It fell sharply on Thursday. As of the close, it was down about 11% for the week. However, Ethereum is still up 38% so far this year.
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