This week, the crypto industry saw the launch of spot Ethereum ETFs, a big step for the market. Nine companies, including Franklin Templeton and VanEck, got the green light from the SEC to introduce these ETFs.

However, things didn’t kick off with a bang.

Franklin Templeton’s Franklin Ethereum ETF (EZET) started off on a shaky note, dropping about 10% since its launch. This drop is part of a broader sell-off in the crypto market.

David Mann, head of ETF product and capital markets at Franklin Templeton, commented that:

“We think they’ll be a hit, but whether they’re going to get the same amount of assets is probably unlikely.”

He added that he is hopeful but realistic about the potential.

A bumpy start for Ethereum ETFs

VanEck’s Ethereum ETF (ETHV) also had a tough start. CEO Jan Van Eck pointed out that while these funds might help diversify investors’ portfolios, they likely won’t see the same level of enthusiasm as Bitcoin ETFs.

“I don’t think they’re going to be the same, same kind of hit as spot Bitcoin ETFs.”

Despite this, there’s a sense of cautious optimism about the future of these ETFs. Ben Johnson from Morningstar offers a bit of a reality check. He mentioned that the volumes we’re seeing are normal when you consider the relative size of Ethereum compared to Bitcoin.

“There’s healthy appetite. There’s healthy volume. There’s healthy demand there,” he said.

As he pointed out, these ETFs are opening doors to new markets and giving investors a convenient, cost-effective way to get into crypto. Right now, Ethereum is priced at $3,283.