Europe dominates the Ethereum ETF market, boasting an impressive $4.6 billion in assets under management.
Europe and Canada are leading the way in the market for Ethereum (ETH) exchange-traded funds (ETFs), while the US regulators are still considering their approval. According to a study by Coingecko, Europe currently holds an 81.4% market share in the global ETH ETF scene, with a total of 13 ETH-backed ETFs valued at $4.6 billion in assets under management (AUM). Canada also has a significant market share, with 16.6% and $949 million in AUM. ETFs have become a popular entry point for Canadian investors into the world of cryptocurrencies, especially after stricter regulations were introduced for crypto companies in the country. As of February 2, the global AUM for Ethereum ETFs stood at $5.7 billion, spread across 27 ETFs that offer both spot and futures funds. European Ethereum ETFs have been available since 2017, when Grayscale launched its ETH trust (ETHE). However, Grayscale’s fund was not included in the study due to its closed-ended structure. The company is currently in discussions with the US Securities and Exchange Commission (SEC) regarding the conversion of ETHE into a spot Ethereum ETF, with a decision expected in May. The approval of spot Bitcoin ETFs in the US may increase the chances of spot ETH funds receiving the green light, despite SEC Chair Gary Gensler’s reservations about classifying most cryptocurrencies as securities. The recent court ruling that favored Grayscale and allowed for the approval of spot BTC ETFs could also impact the SEC’s decision on spot ETH ETFs. However, it is important to note that the approval process for Ethereum ETFs may not follow the same path as that of Bitcoin ETFs. In the meantime, several spot ETH ETFs, including those from Fidelity and Invesco Galaxy, have been delayed until the second quarter of 2024.
