Ethereum ETFs lead the ETF market

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Ethereum ETFs lead the ETF market

After a slow start, the ETF market is heading to the next stage, with VanEck and ProShares taking an early lead. Over 90% of the total trading volume has been made up by their stocks, effectively breaking out of the pack.

The value of Ethereum shares has surged by more than $16 million in trading volume since Monday, bringing the total to more than $16 million.

VanEck's EFUT and ProShares' EETH, both of which attracted about $8 million in volume, were among the top ETFs. VanEck's fund flipped after trailing it on the first day.

Bitwise's Ethereum ETF, also launched this week, attracted about $620,000. ProShares and Bitwise are adding Ethereum to three other funds.

The Ethereum futures ETF launch has been 'disappointing', said K33 Research's Vetle Lund.

ETFs allow investors to bet on the performance of stocks, commodities, and cryptocurrencies.

Although structured products have gained popularity in recent times, they are not without risks.

In a report published Wednesday, Citigroup said that 50 percent of ETFs operate at a loss for issuers.

With more than $200 billion in assets under management, Invesco's QQQ ETF does not make any money for the asset manager.

It's a 'brutally competitive industry', said Nate Geraci, the head of financial advisor the ETF Store.

Despite the savage competition, more Ethereum ETFs could be on the way - this time spot products, tracking the live price rather than the price in the future.

Digital asset manager Grayscale filed to convert its Ethereum trust to a spot ETF on Monday. The asset manager is not alone, Galaxy Digital and Invesco, among other companies, have filed for spot products.

It's not just Ethereum funds, but it's not just tokens for cryptocurrencies, he said. Investors are eagerly awaiting the approval of a spot Bitcoin ETF. While most live applications have been delayed, there is one hope left.

Grayscale won its appeal against the SEC's rejection of its application in August. The agency's decision to appeal the decision is due to be made public next Friday, October 13.

The Markets Correspondent for DL News, Adam Morgan McCarthy, is based in London. Tom Carreras, a market reporter at DL News, is an expert on the market.