Ethereum ETFs are financial instruments that allow investors to buy and sell shares on conventional stock exchanges, following the price of Ether, the second most important cryptocurrency 👇
Ethereum ETFs were approved by the SEC on May 23, 2024. This approval will allow institutional investors to access Ethereum through a regulated investment vehicle, eliminating the challenge of holding custody of their own assets, undoubtedly an easier way to participate in the cryptocurrency market 🧐
Some of the benefits of Ethereum ETFs:
- Greater accessibility: They allow investors to participate in the cryptocurrency market without having to manage digital assets.
- Regulation: They are regulated by the SEC, which offers greater security for investors.
- Diversification: They can be an option to diversify the investment portfolio.
Approved Ethereum ETFs:
VanEck
Fidelity
Franklin
Grayscale
Bitwise
ARK Invest & 21Shares
Invesco & Galaxy
BlackRock
The approval of Ethereum ETFs by the US Securities and Exchange Commission (SEC) may have a significant impact on the price of the cryptocurrency.
Demand is expected to increase due to the inflow of money from financial institutions into the market, which would drive up the price of Ether in the long term📈
Meanwhile, in the short term, the reality is somewhat different. Since Ether ETFs were approved, there have been capital outflows of $568 million from the cryptocurrency market due to this event 🚨
And this is because Grayscale's fund was selling almost every day while the other ETFs were unable to cover that amount of supply with their purchases.
It is expected that in the medium and long term, these sales will begin to decrease and the net capital flow in the funds will begin to be positive, in simple words, that more money will begin to enter the cryptocurrency market than leaves. That would really encourage a rise in ETHER prices ✅
Without a doubt, it is another door to facilitate access so that new investors can join the world of cryptocurrencies in the future, or at least take their first steps in it to learn more.
The important thing is that new investors manage to educate themselves correctly in the crypto market to achieve better adoption.
