Crypto Spot ETFs Will Have More Influence on Market’s Price Action: Canaccord

Analysts headed by Michael Graham predict that Spot Exchange-Traded Funds (ETFs) will have a greater influence on cryptocurrency market movements.

According to Canaccord’s analysis, although the inflow of institutional investments into bitcoin ETFs has decreased from their peak in February, the trend of institutional adoption continues to expand. Over half of the world’s leading hedge funds now trade or hold spot Bitcoin ETFs. Major institutions have only recently started disclosing their holdings, and the SEC is rumored to be considering approving options for Bitcoin ETFs.

Retail investors have another option to invest in cryptocurrencies through Exchange-Traded Funds (ETFs), even in retirement accounts like IRAs and those with tax benefits, according to the report. The approval of Bitcoin spot ETFs for trading in the US began earlier this year in January.

Later this summer, the Securally Exchange Commission (SEC) has given its approval for the introduction of Ether Spot Exchange-Traded Funds (ETFs). The next step requires the SEC’s endorsement of S-1 filings before these new products can begin trading. Although there is macroeconomic instability and uncertainty regarding future interest rate adjustments, Canaccord Genuity believes that “favorable supply-demand dynamics following the ethereum halving” could further boost the momentum for Bitcoin ETFs.

As a crypto investor, I keep a keen eye out for the introduction of Ether Exchange-Traded Funds (ETFs). Once these become available for trading, they have the potential to significantly boost the market. Not only will they expand institutional investment in Ether itself, but they may also contribute to increasing appetite for other crypto assets as well. This positive impact on the wider crypto ecosystem is an exciting development that I am eagerly anticipating.