Spot Ethereum ETF Countdown – Approval is Imminent
Traders eagerly await SEC approval for the first spot ether ETFs, expected soon after the successful debut of spot bitcoin ETFs in early 2024.
Finnancial expert Jared Blikre analyzes the crypto market’s current state and the potential impact of Ethereum ETFs.
The crypto market is under pressure, with Bitcoin and Ethereum both down over 20% from recent highs. However, there’s excitement about new ETFs launching imminently. Following the January listing of spot Bitcoin ETFs, major players like BlackRock and Fidelity are updating their S-1 forms with the SEC to introduce spot ETH ETFs, aiming to enhance market liquidity.
The SEC approved Ethereum ETFs based on futures last October, but spot ETFs directly track crypto prices, unlike futures-based ETFs. The SEC had resisted spot crypto ETFs until losing a court battle with Grayscale Investments, which wanted to convert its Grayscale Bitcoin Trust (GBTC) into an ETF for the public. This legal victory allowed spot Bitcoin ETFs to debut earlier this year.
READ MORE:
Here is Why Ethereum ETF Could be a Big Deal for CryptoSince January, spot Bitcoin ETFs have attracted significant investor interest. For example, the iShares BTC Trust (IBIT) has accumulated $18.1 billion in inflows, making it one of the top ETF performers this year. Conversely, the Grayscale Bitcoin Trust has seen outflows of $18.7 billion, partly due to its higher management fees compared to new zero-fee ETFs.
As spot Ethereum ETFs near launch, investors might shift from Grayscale’s ETH fund to these new lower-cost options. All indications suggest that SEC approval is imminent, with ETF managers nearly ready.
The impact of spot Ethereum ETFs on crypto prices is uncertain. Bitcoin saw a price dip on its spot ETF launch day but quickly rallied to new highs. The excitement around ETH ETFs could drive similar dynamics. The potential inclusion of these new crypto investment options in portfolios and 401(k) plans is likely to attract significant investor interest, further integrating cryptocurrencies into mainstream financial markets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
This Week's Preview: BTC Returns to 86,000, Trump’s Epic Showdown with Major Shorts, Macro Turmoil Just Settled
After last week's global market panic and subsequent recovery, bitcoin rebounded to $86,861. This week, the market will focus on new AI policies, the standoff between bears and bulls, PCE data, and geopolitical events, with intensified competition. Summary generated by Mars AI. The accuracy and completeness of this summary, produced by the Mars AI model, are still being iteratively improved.
At risk of being removed from the index? Strategy faces a "quadruple squeeze" crisis
Strategy is facing multiple pressures, including a significant narrowing of mNAV premiums, reduced coin hoarding, executive stock sell-offs, and the risk of being removed from indexes. Market confidence is being severely tested.
VIPBitget VIP Weekly Research Insights
How to plan a perfect TGE launch?
Most TGE failures are not due to poor products or inexperienced teams, but because their foundations were never prepared to face public scrutiny, competition, and shifts in narrative.
Trending news
MoreCrypto prices
More
