Despite recent weakness, new spot ETFs may still be successful.

This week marks a significant milestone for the cryptocurrency industry as spot ether exchange-traded funds are launched.

The Securities and Exchange Commission approved Franklin Templeton as one of the nine spot ether ETF applicants on Tuesday.

The Franklin Ethereum ETF (EZET) has experienced a 10% decline since its launch, as of Thursday's close, due to the sell-off in cryptocurrencies.

"According to David Mann, the head of ETF product and capital markets at the firm, it is unlikely that they will receive the same amount of assets as before, but it is still impressive."

The VanEck Ethereum ETF (ETHV), which was approved, was created by VanEck, a global investment manager.

Spot ether ETFs will aid investors in diversification, according to CEO Jan Van Eck, but he anticipates a distinct energy level for these ETFs.

Van Eck stated that he believes spot bitcoin ETFs will not be the same kind of hit as the original spot bitcoin ETFs.

His new fund is also down sharply since Tuesday.

Morningstar's Ben Johnson views the volumes for spot ether ETFs as typical because they are roughly proportional to the relative market cap of ether compared to other cryptocurrencies.

"The research firm's head of client solutions stated that there is healthy appetite, volume, and demand for ETFs, which provide access to new markets, investment opportunities, and are cost-effective, convenient, and compatible with modern portfolio building methods."

Despite dropping sharply on Thursday, ether is still up 38% so far this year.