Europe Leads Ethereum ETF Market With $4.6 bn AUM
Europe and Canada are leading the global Ethereum (ETH) ETF market with an 81.4% market share, with 13 ETH-backed ETFs and $4.6 billion in assets under management (AUM). Canada commands a 16.6% market share of $949 million in AUM.
ETFs have become a gateway into crypto for many Canadian investors, and local regulators have introduced stricter measures on crypto companies, leading to an exodus of exchanges like Binance and Bitstamp.
As of February 2, global ETH ETF AUM stood at $5.7 billion, spread over 27 ETFs featuring both spot and futures funds. European Ethereum ETFs have traded since 2017, but Grayscale’s fund was excluded from the study due to its close-ended structure.
The SEC’s loss to Grayscale in court and the eventual approval of spot BTC ETFs on Jan. 10 may improve the chances of a green light for spot ETH funds. A U.S. court found the SEC’s denial of spot crypto products while allowing futures-based ETFs was “arbitrary and capricious.”
In the interim, several spot ETH ETFs have been delayed until the second quarter of 2024, including bids from issuers like Fidelity and Invesco Galaxy.
(With inputs from Shikha Singh)
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