By Anastasia Samaras

The first spot Ethereum ETFs began trading last week on July 23rd, 2024 from institutions including BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy. These issuers also offer spot Bitcoin ETFs, which were approved by the SEC in January of this year. 

With a strong start of over $1 billion in trade volume on their first day, spot ETH ETFs are representing 23% of the volume seen by Bitcoin ETFs on their launch.¹ This is an important step in the expansion and public approval of cryptocurrencies and blockchain technology.

What are Ethereum exchange-traded funds (ETFs)?

Similar to well-known traditional ETFs and Bitcoin ETFs, ETH ETFs track the price of their underlying asset (Ethereum) without investors directly owning the cryptocurrency. Ethereum is the world’s second-largest cryptocurrency, after Bitcoin, and these ETFs allow investors more familiar with regulated U.S. exchanges to participate in the crypto market.

Investors can buy ether on cryptocurrency exchanges and store them in a digital wallet, however, many investors are still not comfortable with such direct participation. This is because even though this method provides direct ownership of Ether, it also requires things like creating a digital wallet, converting to crypto, or entrusting a crypto exchange to securely store and manage your private keys. While crypto exchanges are becoming more user-friendly and secure, they continue to confront issues such as a lack of regulation and the potential for hacking and theft.

Ether ETF Market Overview

  • By market close on day one, the Ether ETFs computed more than $1 billion in trade volume. Total net inflows on day one for the new ETH ETFs were $107 million.²
  • Exactly a week after they made their debut, spot ether exchange-traded funds (ETFs) recorded their second day of positive inflows at $33.7 million.³
  • The debut of Ethereum ETFs increased the trading volume of digital asset investment products to $14.8 billion, the highest level since May.⁴
  • Alongside ETH developments, Bitcoin BTC has attracted $3.6 billion in inflows over the past month, contributing to a year-to-date (YTD) total of $19 billion — a historic high.⁵

Upstream is Seeking to Bridge the Gap for International Investors 

While the U.S. Ether ETF launches are an exciting milestone for the crypto and greater blockchain community, hurdles like account minimums, market hours, and phone regulatory hurdles may still be limiting international participation. This is where Upstream believes we can make a difference.

Upstream, a MERJ Exchange market and global stock trading app, works to make it easier for international investors to access U.S. and international equities. Upstream is actively accepting applications for both ether and bitcoin ETFs to list. 

It’s important to note that Upstream is not a cryptocurrency market and does not allow account funding via bitcoin, ether, or crypto trading. Upstream is a securities market and trading app powered by Ethereum smart-contract technology. Further, U.S. and Canadian investors may not deposit, buy, or sell securities on Upstream.

With the interest in both Bitcoin and Ether ETFs in the U.S., the demand for global access to crypto ETFs is evident. Upstream is positioned to address this need by providing a user-friendly platform for international investors to participate in the growing ETF market.

Ready to Learn More? For parties interested in listing an Ether or Bitcoin ETF on Upstream: https://upstream.exchange/GetListed or contact the team at hello@upstream.exchange.

Sources

1 CoinDesk | 2 SoSoValue | 3 Farside |4 CryptoPotato | 5 The Crypto Basic

Disclaimers

U.S. persons may not deposit, buy, or sell securities on Upstream.

This communication shall not constitute an offer to sell securities or the solicitation of an offer to buy securities in any jurisdiction where such offer or solicitation is not permitted. Collectibles have no royalties, equity ownership, or dividends. Collectibles are for utility, collection, redemption, or display purposes only. Anyone may buy and sell Collectibles on Upstream. All orders for sale are non-solicited by Upstream and a user’s decision to trade securities must be based on their own investment judgment.

Upstream is a MERJ Exchange market. MERJ Exchange is a licensed Securities Exchange, an affiliate of the World Federation of Exchanges, a National Numbering Agency, and a member of ANNA. MERJ is regulated in the Seychelles by the Financial Services Authority, https://fsaseychelles.sc/, an associate member of the International Association of Securities Commissions (IOSCO). MERJ supports global issuers of traditional and digital securities through the entire asset life cycle from issuance to trading, clearing, settlement, and registry. It operates a fair and transparent marketplace in line with international best practices and principles of operations of financial markets. Upstream does not endorse or recommend any public or private securities bought or sold on its app. Upstream does not offer investment advice or recommendations of any kind. All services offered by Upstream are intended for self-directed clients who make their own investment decisions without aid or assistance from Upstream. All customers are subject to the rules and regulations of their jurisdiction. By accessing the site or app, you agree to be bound by its terms of use and privacy policy. Company and security listings on Upstream are only suitable for investors who are familiar with and willing to accept the high risk associated with speculative investments, often in early and development-stage companies. U.S. persons may not deposit, buy, or sell securities on Upstream. There can be no assurance the valuation of any particular company’s securities is accurate or in agreement with the market or industry comparative valuations. Investors must be able to afford market volatility and afford the loss of their investment. Companies listed on Upstream are subject to significant ongoing corporate obligations including, but not limited to disclosure, filings, and notification requirements, as well as compliance with applicable quantitative and qualitative listing standards.

Collectible products are akin to a digital sticker of an underlying artwork and should not be considered a financial investment; a security token, an e-money token, or a form of digital currency. Collectibles should not, therefore, be purchased by anyone seeking financial gain or with an expectation to profit from the purchase, ownership in the entity, dividends or distributions, sale or resale of a Collectible. By buying a Collectible, you agree that you are not doing so for investment purposes or for the purposes of obtaining a security or an appreciating asset. You understand that the benefit you receive for buying a Collectible is limited to supporting athletes, celebrities and other brands. You also acknowledge that ownership of a Collectible does not carry with it any rights, express or implied, including (without limitation) copyright, trademarks or other intellectual property or proprietary rights in and to the underlying artwork. The copyright to the digital artwork remains with the copyright holder.

Forward-Looking Statements
This communication contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) difficulties in obtaining financing on commercially reasonable terms; (ii) changes in the size and nature of our competition; (iii) loss of one or more key executives or brand ambassadors; and (iv) changes in legal or regulatory requirements in the markets in which we operate. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.