To The Moon

The launch of Ethereum spot ETFs on U.S. stock exchanges marks another milestone victory for the crypto world, as these funds tied to the world's second-largest cryptocurrency after Bitcoin went live on Tuesday.

The debut was robust, with total trading volume hitting $1.07 billion, according to digital Asset index providers CF Benchmarks, Bitwise Asset Management, and traders.

Bitwise said the most actively traded ETF was $Grayscale Ethereum Trust(ETHE)$ , which had more than $450 million in turnover; $iShares Ethereum Trust ETF(ETHA)$ had a turnover of approximately $245 million; $Fidelity Ethereum Fund(FETH)$ had turnover of $137 million.

Ethereum ETF products from Franklin Templeton, VanEck, Bitwise, 21Shares and Invesco also began trading on Tuesday.

After the rollout of nine Bitcoin ETFs in January, these Ethereum offerings signify another push by the crypto industry into broader financial waters, though analysts anticipate less capital inflow compared to Bitcoin ETFs.

A decade-long battle

The Bitcoin ETF journey culminated in a decade-long battle with the SEC, which initially rejected them due to market manipulation concerns. The SEC's approval, following Grayscale's lawsuit victory, came with a warning of high risks.

By June end, these Bitcoin ETFs had attracted a whopping $33.1 billion in net inflows, making it one of the most successful ETF launches ever, per Morningstar Direct. Competition on fees was fierce, with some offering fee waivers for an initial period.

Ethereum ETF fees range from Franklin Templeton's low of 0.19% to Grayscale's high of 2.5% (for its existing trust converting to an ETF), with most clustering around 0.25%. Grayscale also offers "mini" versions of its Ethereum and Bitcoin ETFs at just 0.15%.

Estimates on Ethereum ETF demand vary widely, but Galaxy Research predicts monthly inflows of $1 billion.

Matteo Greco, a Fineqia International research analyst, noted in a report:

"Overall, market participants expect ETH spot ETFs to receive strong attention and receive significant inflows in the first 3-6 months after launch. The demand for an ether ETF is critical to determining investor appetite for digital assets other than bitcoin."