Ether exchange-traded funds (ETFs) launched last Tuesday, drawing over $100 million in net inflows and $1 billion in trading volume on day one. This performance outstripped the average ETF’s £1 million opening day, according to Bitwise.

Yet, these new offerings from financial heavyweights like Fidelity and BlackRock face significant obstacles. Most notably, they lack ether’s key feature: staking rewards. This omission stems from SEC Chairman Gary Gensler’s stance that staking could classify the funds as securities, triggering stricter regulations.

Without staking, ether ETFs are projected to attract only 25% to 30% of bitcoin ETF demand, frustrating fund managers’ fee expectations. The $4.6 billion influx bitcoin ETFs saw in January remains a distant benchmark.

However, recent developments hint at potential shifts. A district court order affirming ether as a commodity could provide legal grounds for looser oversight. Moreover, the political climate is evolving. Former President Donald Trump, once a crypto sceptic, now pledges to end the government’s “anti-crypto crusade” if re-elected.


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