Spot Ethereum ETF’s first week

What you need to know about spot Ethereum ETFs and how Upstream fits in

By Anastasia Samaras

The first spot Ethereum ETFs began trading last week on July 23rd, 2024 from institutions including BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy. These issuers also offer spot Bitcoin ETFs, which were approved by the SEC in January of this year.

With a strong start of over $1 billion in trade volume on their first day, spot ETH ETFs are representing 23% of the volume seen by Bitcoin ETFs on their launch.¹ This is an important step in the expansion and public approval of cryptocurrencies and blockchain technology.

What are Ethereum exchange-traded funds (ETFs)?

Similar to well-known traditional ETFs and Bitcoin ETFs, ETH ETFs track the price of their underlying asset (Ethereum) without investors directly owning the cryptocurrency. Ethereum is the world’s second-largest cryptocurrency, after Bitcoin, and these ETFs allow investors more familiar with regulated U.S. exchanges to participate in the crypto market.

Investors can buy ether on cryptocurrency exchanges and store them in a digital wallet, however, many investors are still not comfortable with such direct participation. This is because even though this method provides direct ownership of Ether, it also requires things like creating a digital wallet, converting to crypto, or entrusting a crypto exchange to securely store and manage your private keys. While crypto exchanges are becoming more user-friendly and secure, they continue to confront issues such as a lack of regulation and the potential for hacking and theft.

Ether ETF Market Overview

• By market close on day one, the Ether ETFs computed more than $1 billion in trade volume. Total net inflows on day one for the new ETH ETFs were $107 million.²
• Exactly a week after they made their debut, spot ether exchange-traded funds (ETFs) recorded their second day of positive inflows at $33.7 million.³
• The debut of Ethereum ETFs increased the trading volume of digital asset investment products to $14.8 billion, the highest level since May.⁴
• Alongside ETH developments, Bitcoin BTC has attracted $3.6 billion in inflows over the past month, contributing to a year-to-date (YTD) total of $19 billion — a historic high.⁵

Upstream is Seeking to Bridge the Gap for International Investors

While the U.S. Ether ETF launches are an exciting milestone for the crypto and greater blockchain community, hurdles like account minimums, market hours, and phone regulatory hurdles may still be limiting international participation. This is where Upstream believes we can make a difference.

Upstream, a MERJ Exchange market and global stock trading app, works to make it easier for international investors to access U.S. and international equities. Upstream is actively accepting applications for both ether and bitcoin ETFs to list.

It’s important to note that Upstream is not a cryptocurrency market and does not allow account funding via bitcoin, ether, or crypto trading. Upstream is a securities market and trading app powered by Ethereum smart-contract technology. Further, U.S. and Canadian investors may not deposit, buy, or sell securities on Upstream.

With the interest in both Bitcoin and Ether ETFs in the U.S., the demand for global access to crypto ETFs is evident. Upstream is positioned to address this need by providing a user-friendly platform for international investors to participate in the growing ETF market.

Ready to Learn More? For parties interested in listing an Ether or Bitcoin ETF on Upstream: https://upstream.exchange/GetListed or contact the team at hello@upstream.exchange.

Sources

1 CoinDesk | 2 SoSoValue | 3 Farside |4 CryptoPotato | 5 The Crypto Basic

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