Ether Spot ETFs Gets Good Response, Trade Over USD 1 Billion on Launch

Exchange traded funds (ETFs) of Ether, the second largest cryptocurrency in terms of market capitalization, have received a good response. Trading of these ETFs has been more than a billion dollars since their launch. Recently, the markets regulator in the US gave approval for their trading.

At the launch of spot bitcoin ETFs earlier this year, trading was around $4.6 billion. According to Bloomberg Intelligence, 248 million shares of BlackRock’s iShares Ethereum Trust ETF were traded. Market analysts say that most of the people who are trading in these ETFs are new to the crypto segment.

Following the launch of spot Bitcoin ETFs, the launch of this Ether product is a victory for the crypto industry’s drive to integrate digital assets into the financial sector. Fees for Ether ETFs range from 0.19 percent to 2.5 percent. This product is important for the crypto segment and will indicate whether digital assets are accepted as an investment or not. Spot crypto ETFs will track the market price of the associated cryptocurrency and provide investors with an opportunity to invest in that cryptocurrency without having to buy it.

The central government’s strict attitude towards cryptocurrencies in India remains intact. Recently, Finance Minister Nirmala Sitharaman had said that cryptocurrencies are not considered or seen as ‘currency’. High taxes on the crypto segment in the country are affecting growth. The crypto industry had requested the central government to reduce taxes on this segment. However, in the budget presented on Tuesday, Sitharaman did not make any mention of cryptocurrencies. This has disappointed the stakeholders associated with this industry. Regulators in some countries have also warned about cryptocurrencies. Cases of scams related to this segment have also increased. Last week, the security of a multi-signature wallet of crypto exchange WazirX was breached. About $240 million (about Rs 1,965 crore) from this exchange has been suspiciously sent to a new address, which is linked to the controversial crypto mixer platform, Tornado Cash. WazirX came to know about this matter from a post on the social media platform X by security firm Cyvers.