Ether Edges Lower on ETF Launches [Video]

Nine spot ether exchange-traded funds (ETFs) began trading on the stock exchanges Tuesday, but all the optimism ahead of their approval didn’t translate into gains for the crypto markets.

Ether (ETH), the native cryptocurrency of the ethereum blockchain, traded down less than 1% around the $3,400 level as of 1:30 p.m. ET, while bitcoin (BTC) slipped more than 2% to around $66,000.

Spot ether ETFs began trading with just over $10 billion worth of assets under management (AUM), according to Bloomberg Intelligence analyst James Seyffart, with most of that money in the existing Grayscale Ethereum Trust (ETHE) that was converted into an ETF today.

“Long term Grayscale will simultaneously have the highest fee and lowest fee on the market. The asset manager’s decision to keep its ETHE fee at 2.5% could lead to outflows from the fund,” said Kaiko Research in a note Monday.

Outflows from ETHE, should they …