Best crypto insights delivered straight to your inbox.
- The launch of spot Ethereum ETFs by Franklin Templeton and VanEck started off rough, with both funds dropping about 10% initially.
- David Mann and Jan Van Eck see potential but caution that these ETFs might not be as popular as Bitcoin ETFs.
This week, the crypto industry saw the launch of spot Ethereum ETFs, a big step for the market. Nine companies, including Franklin Templeton and VanEck, got the green light from the SEC to introduce these ETFs.
However, things didn’t kick off with a bang.
Franklin Templeton’s Franklin Ethereum ETF (EZET) started off on a shaky note, dropping about 10% since its launch. This drop is part of a broader sell-off in the crypto market.
David Mann, head of ETF product and capital markets at Franklin Templeton, commented that:
“We think they’ll be a hit, but whether they’re going to get the same amount of assets is probably unlikely.”
He added that he is hopeful but realistic about the potential.
A bumpy start for Ethereum ETFs
VanEck’s Ethereum ETF (ETHV) also had a tough start. CEO Jan Van Eck pointed out that while these funds might help diversify investors’ portfolios, they likely won’t see the same level of enthusiasm as Bitcoin ETFs.
“I don’t think they’re going to be the same, same kind of hit as spot Bitcoin ETFs.”
Despite this, there’s a sense of cautious optimism about the future of these ETFs. Ben Johnson from Morningstar offers a bit of a reality check. He mentioned that the volumes we’re seeing are normal when you consider the relative size of Ethereum compared to Bitcoin.
“There’s healthy appetite. There’s healthy volume. There’s healthy demand there,” he said.
As he pointed out, these ETFs are opening doors to new markets and giving investors a convenient, cost-effective way to get into crypto. Right now, Ethereum is priced at $3,283.
Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jai Hamid
Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.
CRASH COURSE
- Which cryptocurrencies can make you money
- How to boost your security with a wallet (and which ones are actually worth using)
- Little-known investment strategies that the pros use
- How to get started investing in crypto (which exchanges to use, the best crypto to buy etc)