While US regulators deliberate over spot ethereum ETFs, Europe and Canada already have billions in eth-related spot and futures products.
According to a study by Coingecko, Europe dominates the global ethereum (eth) ETF scene with a market share of 81.4%. The area has 13 eth-backed ETFs divided into spot products and futures funds, amounting to $4.6 billion in assets under management (AUM).
Canada is also a big market for eth ETFs and has a 16.6% market share of $949 million in assets under management. ETFs have also become a gateway to cryptocurrencies for many Canadian investors. Local regulators introduced stricter measures against crypto companies, leading to an exodus from exchanges such as Binance and Bitstamp.
Global eth ETF AUM stood at $5.7 billion as of February 2, spread across 27 ETFs that include both spot and futures funds. European ethereum ETFs have been trading since 2017, when Grayscale launched its eth fund (ETHE). However, the Grayscale fund was excluded from the study due to its closed structure.
The company engaged with the US Securities and Exchange Commission (SEC) to convert ETHE into an ethereum spot ETF, but the decision was delayed until May, crypto.news reported.
<img decoding="async" width="836" height="640" src="https://crypto.news/app/uploads/2024/02/Screenshot-226.png” alt=”Europe leads ethereum ETF market with $4.6 billion in assets under management – 1″/>
Spot ethereum ETF in the US
Following the approval of bitcoin (btc) spot ETFs in the US, SEC Chairman Gary Gensler emphasized that ethereum-based products may not receive the same treatment. Gensler has repeatedly reiterated that most cryptocurrencies qualify as securities and must register with the SEC.
However, the SEC's loss to Grayscale in court and the eventual approval of btc spot ETFs on January 10 may improve the chances of a green light for spot eth funds. A US court concluded that the SEC's denial of spot crypto products while allowing futures-based ETFs was “arbitrary and capricious.”
SEC Commissioner Hester Peirce also said that ethereum ETF approvals will not be the same as those of bitcoin's counterpart, where a court ruling was required to cajole the securities watchdog into re-evaluating its decision.
Meanwhile, several eth spot ETFs have been delayed until Q2 2024, including offerings from issuers like Fidelity and Invesco Galaxy.
