Europe leads Ethereum ETF market with $4.6b AUM

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Whereas U.S. regulators deliberate on spot Ethereum ETFs, Europe and Canada already boast billions in spot and futures ETH-related merchandise. 

Per a Coingecko examine, Europe dominates the worldwide Ethereum (ETH) ETF scene with an 81.4% market share. The world has 13 ETH-backed ETFs break up throughout spot merchandise and futures funds, amounting to $4.6 billion in belongings underneath administration (AUM).

Canada can be a giant marketplace for ETH ETFs and instructions a 16.6% market share of $949 million in AUM. ETFs have additionally grow to be a gateway into crypto for a lot of Canadian traders. Native regulators launched stricter measures on crypto corporations, resulting in an exodus of exchanges like Binance and Bitstamp.

World ETH ETF AUM stood at $5.7 billion as of Feb. 2, unfold over 27 ETFs that includes each spot and futures funds. European Ethereum ETFs have traded since 2017, when Grayscale launched its ETH belief (ETHE). Nonetheless, Grayscale’s fund was excluded from the examine as a consequence of its close-ended construction. 

The corporate was engaged with the U.S. Securities and Alternate Fee (SEC) over changing ETHE to a spot Ethereum ETF, however a choice was delayed until Might, crypto.information reported.

Europe leads Ethereum ETF market with $4.6b AUM - 1
World Ethereum ETFs markets | Supply: CoinGecko

Spot Ethereum ETFs within the U.S.

Following approval of spot Bitcoin (BTC) ETFs within the U.S., SEC chair Gary Gensler stressed that Ethereum-based merchandise might not obtain the identical remedy. Gensler has repeatedly reiterated that the majority cryptocurrencies qualify as securities and should register with the SEC.

Nonetheless, the SEC’s loss to Grayscale in court docket and the eventual approval of spot BTC ETFs on Jan. 10 might higher the possibilities of a inexperienced mild for spot ETH funds. A U.S. court docket found that the SEC’s denial of spot crypto merchandise whereas permitting futures-based ETFs was “arbitrary and capricious”.

SEC Commissioner Hester Peirce additionally said Ethereum ETF approvals won’t be the identical because the Bitcoin counterpart, the place a court docket ruling was required to persuade the securities watchdog into reassessing its choice. 

Within the interim, a number of spot ETH ETFs have been delayed till the second quarter of 2024, together with bids from issuers like Fidelity and Invesco Galaxy.

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