Early Ethereum ETF Winners & Losers

The ETH ETFs are coming soon. Here are the contenders and where they stand as of today…

The Elite Eight: The starting lineup of prospective issuers as of today is Fidelity, 21 Shares, BlackRock, Bitwise, Franklin Templeton, Grayscale, Invesco//Galaxy, and VanEck – almost the same crowd that launched BTC ETFs.

Notably missing are:

• Cathie Wood’s Ark Invest, who was originally partnered with 21 Shares, backed out last Friday.

• Hashdex, which withdrew it’s application without much reasoning.

• Valkyrie, which has sat out from the beginning, after stating that they just didn’t see much demand from their clients.

Why are funds backing out? Experts are expecting ETH ETFs to be about 20% the size of the BTC ETFs… so, just less meat on the bone. Still, K33 Research predicts that the ETFs could attract between $3.1-$4.8 billion in net inflows in their first five months. This equates to 0.7%-1.05% of the current circulating supply.

Sure to be another fee battle: Franklin Templeton has already come out swinging with a 0.19% trading fee. We wouldn’t be surprised to see this fee undercut by another provider in the coming days.

Coinbase wins again? Coinbase (COIN) is already the custodian for 90% of bitcoin ETFs and that lead doesn’t look to be going away with Ethereum. Already six of the issuers have chosen Coinbase as their custodian.