Ethereum ETFs are set to launch today as crypto enters the financial mainstream
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Coming to a retirement account near you… Crypto traders celebrated over the weekend after the Chicago Board Options Exchange (the US’s largest options exchange) said that five spot ethereum exchange-traded funds were scheduled to start trading today. The ETFs will track the price of the second-largest coin, letting crypto-cautious investors get exposure to ethereum’s moves without having to own the crypto. It’s the same idea as spot bitcoin ETFs, which started trading in January. Bitcoin has since rallied 45%.
401(k)rypto: With spot ethereum ETFs, investors saving for retirement with 401(k)s and IRAs can more easily add crypto to their portfolios.
ETFees: Ethereum ETF issuers Fidelity, Franklin Templeton, Invesco, 21Shares, and VanEck are competing to offer the lowest management fees in the hope of snatching market share.
Makin’ market moves… Analysts at Citi expect $5B to flow into spot ether ETFs within their first six months of trading. While that’s far less than the $16.6B spot bitcoin ETFs have pulled in, it’s still significant. Tamping down the enthusiasm: spot ethereum ETFs aren’t expected to allow staking, which experts say could dissuade some investors looking for more returns on their ETH-vestment. Still, ethereum fans are hoping an influx of retail $$ will drive up the price of the coin.
Crypto’s getting institutional… By making crypto more palatable to the likes of pension funds, hedge funds, and investment banks, spot crypto ETFs could cement cryptocurrency’s place in the financial mainstream. And it may be just the start: some analysts say a Solana ETF or a fund representing a mix of coins could be next. There’s plenty of room to grow, with the Fed estimating that last year just 7% of US adults owned or used crypto.