As a seasoned researcher with extensive experience in the digital asset industry, I have closely followed the development of Ether exchange-traded funds (ETFs) and their anticipated launch. The recent reports suggesting that spot Ether ETFs could begin trading as early as next week is an exciting prospect for investors and market participants alike.
As a crypto investor, I’ve been closely monitoring the developments in the world of ETFs. Based on information from three reliable industry insiders reported by Reuters, we can expect spot Ether ETFs to start trading as early as July 23.
As a crypto investor, I’ve come across some exciting news. Reports indicate that the U.S. Securities and Exchange Commission (SEC) has given the green light to at least three out of eight asset managers to introduce their Ether exchange-traded funds (ETFs). This means we could soon have these ETFs available for trading on major exchanges. Keep your fingers crossed!
Will Spot Ether ETFs Begin Trading Next Week?
Nate Geraci, President of The ETF Store, brought up an intriguing update in a recent post on X. He pointed out that the Securities and Exchange Commission (SEC) has granted preliminary approval to at least three prospective issuers of Spot Ethereum ETFs to commence trading next Tuesday. The expectation is that all eight applicants will debut concurrently.
According to Reuters, the Securities and Exchange Commission (SEC) has granted “conditional blessings” to at least three of the eight applicants for spot Ethereum Exchange-Traded Funds (ETFs), allowing them to initiate trading starting next Tuesday.
All eight expected to launch at same time tho.
— Nate Geraci (@NateGeraci) July 15, 2024
After his July 15th post, he made the hopeful forecast that Ethereum ETF approval was imminent, explaining, “I’m confidently declaring it’s ‘ETF approval week.’ I don’t have insider knowledge; I simply can’t think of a compelling reason for any further delay right now. The issuers are all set and prepared to launch.”
According to reports, notable asset management firms such as BlackRock, VanEck, and Franklin Templeton are predicted to secure SEC authorization by July 22. Consequently, trading is believed to commence on July 23. However, these Ether spot ETFs’ approval remains contingent upon the applicants delivering their final proposal documents to the SEC before the week’s end.
The process of getting approval for an Ether ETF at destination point started in September with modest hopes due to pessimistic comments from the SEC. However, the unexpected green light given by the agency for essential rule modifications in May, coupled with SEC Chair Gary Gensler’s recognition of the implications of the Grayscale ruling, laid the groundwork for the highly anticipated launch.
Experts Predict More Modest Inflows
As an analyst, I’ve observed the SEC’s change in stance regarding the approval of Ether Exchange-Traded Funds (ETFs). Initially, the SEC expressed hesitance due to concerns over potential market manipulation. However, following a court challenge by Grayscale Investments, the digital asset manager, the SEC reversed its decision and approved nine Bitcoin ETFs in January. This shift paved the way for the approval of Ether ETFs as well.
Based on information from Morningstar Direct, these ETFs experienced significant growth during their initial three-week period, amassing around $6.6 billion in assets. By the end of June, they had drawn in a net total of approximately $33.1 billion in investments.
Martin Leinweber, a digital asset strategist at MarketVector Indexes, expects that the inflows into Ether will be more restrained and its price will exhibit greater fluctuations compared to Bitcoin. This prediction stems from Ether’s relatively smaller market value and trading volumes. Based on CoinGecko data, Bitcoin currently holds a market worth of over $1 trillion, whereas Ether’s market size is around $359 billion.
Leinweber cautioned, “We should keep our hopes in check.” Despite having a smaller market, Galaxy Research anticipates that ether SPDRs could still draw in $1 billion in monthly investments. Perfumo, Kraken’s head of strategy, further explained that successful spot Ether ETFs don’t necessarily require the same level of inflows as Bitcoin ETFs to be considered successful.
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2024-07-16 21:40