- Ethereum ETFs launch on U.S. exchanges, attracting great attention from investors, analysts and media.
- Jim Cramer comments on Ethereum’s price drop, attributing it to prior inflation due to early ETF launches.
Ethereum exchange-traded funds (ETFs) began trading on U.S. exchanges, following approval from the U.S. Securities and Exchange Commission (SEC).
This development attracted a great deal of attention from investors, analysts and media, including remarks from CNBC’s Jim Cramer on the ETF’s debut and its impact on Ethereum’s price.
Jim Cramer’s assessment of Ethereum’s price fluctuations
Jim Cramer commented on Ethereum’s recent price performance in connection with the launch of its spot exchange-traded funds. He noted a decline in Ethereum’s price, attributing it to its previous rise in anticipation of the ETFs’ debut.
Cramer suggested that the price had previously been inflated due to expectations around the new financial products.
Initial trading volumes indicate strong interest
Despite the initial price decline noted by Cramer, trading volumes for Ethereum ETFs were substantial.
Reports indicate that in the first hour of trading, total transactions in these ETFs exceeded $100 million.
Grayscale’s Ethereum ETF (ETHE) led with $39.7 million, followed by Bitwise’s ETHW with $25.5 million, BlackRock’s ETHA with $22.5 million and Fidelity’s FETH with $15.2 million.
Custody concentration raises concerns
VanEck’s Gabor Gurbacs expressed concern about the potential risks associated with the high concentration of Ethereum assets custodied by Coinbase.
He suggested that this could introduce systemic risks or vulnerabilities due to the centralized nature of the custody arrangement.
I have no horse in this race anymore but always have been an advocate of fairness and free market competition. If I was the chairman of the SEC this would have never happened under my watch. Status quo law/reg-fare damages investors, businesses and capital formation.
— Gabor Gurbacs (@gaborgurbacs) July 23, 2024
Impact of Ethereum ETFs on the market
The approvalof these ETFs bythe SEC , allowing them to be listed and traded, has generally been received positively by the market. This development represents a significant step towards the integration of Ethereum into mainstream financial markets, providing investors with more conventional means of gaining exposure to this cryptocurrency.
Reactions to these ETFs, including initial trading volumes and market analyst commentary, reflect the financial community’s nuanced views on the integration of cryptocurrencies such as Ethereum into traditional investment vehicles.
