- Europe and Canada dominate the global Ethereum ETF markets.
- There are 27 active Ethereum ETFs globally.
- Europe's ETF market grew by 28% in 2023.
Ethereum ETFs have gained immense popularity globally, exposing investors to digital assets without directly holding them. Among other cryptos, Ethereum is at the forefront of the ETF space, with most investors showing bias towards it. BanklessTimes.com shows that Europe and Canada dominate the Ethereum ETF space, holding a 98% market share.
Commenting on this status, BanklessTimes CEO Jonathan Merry said:
BanklessTimes CEO, Jonathan MerryEurope and Canada boast regulatory frameworks that provide clarity and oversight for cryptocurrency investments. This has instilled confidence among investors. Regulated Ethereum ETFs offer a level of investor protection and transparency that is crucial for widespread adoption.
Ethereum ETF Value and Distribution
Globally, 27 active Ethereum ETFs exist, comprising seven Ethereum futures ETFs and 20 spot Ethereum ETFs valued at $5.7 Billion. The asset size of Ethereum futures ETF stands at 68.5% compared to spot Ethereums’ 31.5%. Moreover, the concentration of assets among the top ten Ethereum ETFs is striking, accounting for 96.4% of the total market assets.
Europe commands a substantial share of the Ethereum ETF market, with a total value reaching $4.65 billion, constituting 81.45% of the market. Meanwhile, Canada holds $949.25 million, representing 16.64% of the global market share. Other players, such as Brazil and the USA, also contribute to the market, albeit to a lesser extent.
Over the past year, the European ETF market grew 28% to reach over $1.8 trillion AUM in 2023. Investor preference was critical in pushing this growth, and it will likely escalate to 2024 at an annual rate of 15% for the next five years.
Why is Europe in the Lead?
It is not coincidental that Europe dominates the global Ethereum ETF market. Several factors are at play, including a favorable regulatory environment for crypto ETF adoption and investment. These regulations facilitated the early introduction of ETFs in the European market, giving it a head start over regions like the USA that are playing catch-up.
Compared to other regions, Europe’s early embrace of crypto ETFs has provided investors with a secure entry point into the crypto market, enabling portfolio diversification beyond traditional assets.
