It's a historic week for cryptocurrency markets as spot ether exchange-traded funds make their debut.
Franklin Templeton is one of nine applicants for a spot ether ETF that received approval from the U.S. Securities and Exchange Commission (SEC) on Tuesday.
The company is behind the Franklin Ethereum ETF (EZET), which has lost around 10% since its launch through Thursday's close. The losses were triggered by the sell-off in cryptocurrencies.
“We think they're going to be a success. Whether they get the same amount of assets is … probably unlikely,” David Mann, the company's head of ETF products and capital markets, told CNBC's “ETF Edge” on Tuesday. “But it's still pretty great.”
VanEck, a global investment manager, is behind the VanEck Ethereum ETF (ETHV), which also received approval.
CEO Jan Van Eck believes spot ether ETFs will help investors diversify, but expects a different energy level for spot ether ETFs.
“I don’t think they’ll be the same hits, the same kind of hit [as spot bitcoin ETFs]”, said Van Eck.
His new fund has also been heavily in the red since Tuesday.
In the long term, Morningstar’s Ben Johnson considers volumes for spot Ether ETFs to be normal, as they are roughly proportional to the relative market capitalization of Ether versus Bitcoin.
“There is a healthy appetite. There is a healthy volume. There is a healthy demand,” said the research firm's head of customer solutions.[The ETFs are] to provide access to new markets and new parts of the investment offering for investors and to bundle this in a cost-effective package. It is practical and fits in with the way more and more investors build their portfolios these days.”
ether fell sharply on Thursday. At the close of trading, the price for the week was down about 11%. Nevertheless, Ether is up 38% so far this year.