The US Securities and Exchange Commission (SEC) is preparing to approve several Ethereum Spot ETFs expected on July 4. This advancement follows final discussions with leading asset managers such as BlackRock and Grayscale Investments.
The launch of these Ethereum Spot ETFs marks an important milestone in the maturation of the cryptocurrency market and mainstream investor acceptance. While the initial reaction and long-term performance of these ETFs remains speculative, strategic initiatives from leading asset managers show strong belief in the potential of Ethereum.
Ability to attract capital for Ethereum Spot ETF
As noted by BeInCrypto, asset managers are looking to build on the success of the Bitcoin Spot ETF in January, which attracted $14 billion in investment capital. In particular, Grayscale is aiming to convert an existing fund into a spot Ethereum ETF. This reflects a strategic move to expand investment options in cryptocurrencies.
Leading ETF analyst Eric Balchunas suggests that Ethereum-based funds could be launched on July 2. Meanwhile, according to a Reuters report, the SEC may approve a spot Ethereum ETF on July 4.
While discussions are still ongoing, sources revealed that the remaining hurdles are only minor tweaks in the proposal documents, which are now nearing final approval. Anticipation for how the market will react to these new ETFs is high. The launch of similar Bitcoin (BTC) products earlier this year sent assets soaring to nearly $52.96 billion on June 26, according to data from SoSoValue.
However, some analysts are cautious about the possibility of similar success for Ethereum. James Butterfill, head of research at Coinshares, noted significant differences in market capacity and volume compared to Bitcoin. Furthermore, Bryan Armor also doubts an Ethereum ETF will generate the same level of excitement.
With Bitcoin, there has been a decade of accumulated demand and investor interest far exceeding expectations. This cannot generate the same excitement.
Armor said.
On the contrary, optimism persists among other experts. Matt Hougan, chief investment officer at Bitwise, is optimistic about the outlook. His predictions are backed by a thorough analysis of market capitalization and evaluation of international ETF markets.
Ethereum exchange-traded products (ETPs) will attract $15 billion in net inflows in their first 18 months on the market.
Hougan said.
Once the SEC approves the prospectuses of these funds, trading can begin within 24 hours. This is due to previous rule changes approved for major exchanges such as the New York Stock Exchange, Nasdaq and Cboe.
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