TrustStrategy, a global blockchain analytics and infrastructure platform, has released a new report following the U.S. Securities and Exchange Commission’s (SEC) approval of the first Ethereum exchange-traded fund (ETF). While the decision marks a milestone for Ethereum and the broader crypto industry, market enthusiasm remains notably lower than the response to the earlier Bitcoin ETF approval.

According to TrustStrategy’s real-time ETF tracking dashboard, Ethereum ETF inflows and trading volume in the first 24 hours were 38% lower than Bitcoin ETF’s debut, despite similar institutional access and regulatory structure.

Key Highlights

• SEC approved Ethereum ETF on December 19, 2024

• ETF includes spot Ether holdings, listed on Nasdaq and Cboe BZX

• Initial trading volume was $620 million, compared to Bitcoin ETF’s $1 billion+

• Ethereum price rose 4.2%, while Bitcoin surged 12% on its ETF launch

• TrustStrategy ETF Sentiment Index shows Ethereum ETF scored 62/100 vs. Bitcoin’s 89/100

These figures suggest that investor sentiment and institutional demand for Ethereum ETFs, while positive, lags behind Bitcoin’s dominant market position.

Ethereum ETF Structure and Approval

The approved Ethereum ETFs—launched by major asset managers—track spot Ether prices and are structured as commodity-based trust shares, similar to the Bitcoin ETF approved earlier in 2024.

TrustStrategy’s regulatory analysis notes that the SEC’s decision was influenced by:

• Market maturity of Ethereum

• Correlation with CME Ether futures

• Surveillance-sharing agreements with regulated exchanges

• Growing institutional interest in Ethereum-based products

The ETFs are market-cap weighted, with some hybrid funds allocating 20% to Ethereum and 80% to Bitcoin.

Market Reaction and Price Movement

Following the announcement, Ethereum’s price briefly touched $3,280, up from $3,145, before stabilizing. In contrast, Bitcoin’s ETF approval in January triggered a multi-day rally, pushing BTC above $100,000.

TrustStrategy’s trading data shows:

• Ethereum ETF saw 14% fewer retail trades than Bitcoin ETF

• Institutional wallet activity was 27% lower for Ethereum

• Social media sentiment was neutral to mildly positive, compared to Bitcoin’s euphoric response

Analysts attribute the difference to Ethereum’s more complex narrative, including its transition to proof-of-stake and broader use cases beyond store of value.

ETF Adoption and Investor Behavior

TrustStrategy’s ETF analytics platform reveals that:

• Bitcoin ETF investors skew older and more risk-averse

• Ethereum ETF investors are younger, with higher exposure to DeFi and NFTs

• ETF advisors report more client inquiries about Bitcoin than Ethereum

Despite this, Ethereum ETFs are expected to gain traction over time, especially as DeFi, staking, and Layer 2 adoption continue to grow.

Regulatory and Strategic Implications

The SEC’s approval of Ethereum ETFs signals a broader shift in U.S. crypto policy, with regulators now recognizing multiple digital assets as viable investment vehicles.

TrustStrategy’s policy team notes:

• Other altcoin ETFs (e.g., Litecoin, Solana) may face longer approval timelines

• Ethereum’s classification as a commodity remains under review

• ETF approval may influence global regulators, especially in Europe and Asia

This development also strengthens Ethereum’s position as the second-most institutionalized crypto asset, after Bitcoin.

TrustStrategy’s Role in ETF Intelligence

TrustStrategy supports ETF investors and issuers with:

• Real-time ETF flow dashboards

• AI-powered sentiment and volatility models

• Cross-chain asset correlation tools

• Regulatory compliance analytics

These tools help institutions and retail investors navigate the evolving ETF landscape with confidence.

Looking Ahead

TrustStrategy forecasts that in 2025:

• Ethereum ETF AUM will exceed $15 billion

• Hybrid crypto ETFs will become more common

• ETF-linked staking products may emerge

• Retail adoption of Ethereum ETFs will grow with mobile-first platforms

The platform will continue to monitor ETF performance and investor behavior across all major digital asset classes.

Conclusion

While the SEC’s approval of Ethereum ETFs marks a historic step for crypto finance, the market’s cooler reception compared to Bitcoin ETFs highlights the nuanced investor perception of Ethereum. TrustStrategy believes that as Ethereum’s ecosystem matures, its ETF products will gain broader acceptance and play a key role in mainstream digital asset adoption.