Five spot Ethereum exchange-traded funds (ETFs) will start trading on the Chicago Board Options Exchange on July 23, “pending regulatory effectiveness,” CBOE announced on July 19.
On May 23, the United States Securities and Exchange Commission (SEC) approved rule changes allowing the listing of several spot Ether ETFs.
However, the regulator still needed to approve each fund issuer’s respective S-1 registration statements before the new products could begin trading.
The five spot Ether ETFs set to begin trading are the 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF, VanEck Ethereum ETF, and Franklin Ethereum ETF.
To gain an early market advantage, almost all of the ETH ETF issuers plan to temporarily waive or discount fees to compete for market share once trading begins.
Industry analysts have told Cointelegraph that Ether ETFs could attract billions in net inflows in the months following the launch.
Increased demand from institutions looking to fill their exchange-traded funds with Ether could spark a supply crunch.
The Ethereum Exchange Reserve, which tracks the amount of Ether available for purchase on cryptocurrency exchanges, is at multi-year lows.
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A recent Kaiko report also touched on Ether’s 1% market depth and suggested that lower liquidity could lead to increased price volatility, potentially sending the price of Ether higher in response to increased demand and potentially outperforming Bitcoin in percentage terms.
Institutional analyst Tom Dunleavy believes inflows into Ethereum ETFs could reach $10 billion this year and see as much as $1 billion in capital flows per month.
In a recent statement, he told Cointelegraph, “I expect a very positive price impact, sending us to new all-time highs by early Q4.”
Chief investment officer of Bitwise Matt Hougan shared a similar sentiment, explaining that Ethereum stakers were not as inclined to sell their assets as Bitcoin holders.
The Bitwise executive noted that 28% of Ether’s supply was already sequestered and cited increased withdrawals from exchanges to colder forms of storage as another sign that Ether holders expect future price appreciation.
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