5 min read- Spot ETH ETFs follow the success of spot BTC ETFs
- What does the start of trade of ETH ETF mean for Ether’s price in the long term?
- ETH falls despite ETF trading launch
Spot Ethereum exchange-traded funds will start trading today, Tuesday, July 23rd, following approval from the US Securities and Exchange Commission (SEC).
The issuers have received approval for their latest S-1 filings, meaning that the funds can begin trading when the US market opens later today. The decision comes after a year-long process to get ETH ETFs approved by the SEC.
Spot ETH ETFs follow the success of spot BTC ETFs
Eight spot Bitcoin ETFs are expected to start trading publicly. They will follow in the footsteps of the Bitcoin equivalent, which has been a roaring success following its launch in January, attracting tens of billions of dollars of investments in just six short months.
The ETFs allow investors to buy shares that track the price of the cryptocurrency, therefore giving traders access to the cryptocurrency on the traditional stock market. These funds also enable institutional traders to get exposure to crypto assets. These funds also encourage more traditional investors to dip their toes into the crypto market, which may have previously spooked them.
The NYSE exchange confirmed it had the approval to list and begin trading Grayscale Ethereum Trust (ETH) and Bitwise Ethereum ETF (ETHW) on Tuesday. The Chicago Board Options Exchange (CBoE) had earlier revealed that BlackRock iShares Ethereum Trust (ETHA), Fidelity Ethereum Fund (FETH), Franklin Templeton Ethereum ETF (EZET), Invesco Galaxy Ethereum ETF (QETH), VanEck Ethereum ETF (ETHV), and 21 Shares ETF (CETH) will also begin trading on Tuesday.
What does the start of ETH ETF trading mean for Ether’s price?
The big question now is what the approval and start of spot ETH ETF trading mean for the price and how it will be impacted. Opinions vary considerably.
While the Bitcoin ETF approval became the most successful launch in the history of ETF products in terms of the speed of money rushing into the funds, ETH ETFs are unlikely to experience the same success given that they lack a first-mover advantage and a strong narrative, such as Bitcoin’s digital gold. Instead, Ether’s appeal lies in its decentralised nature and its potential to drive digital transformation in both finance and finance and other industries.
The start of ETH ETF trading is expected to support Ether’s price over the long term as it slowly changes the investor landscape. Several experts, including analysts from Bitwise and Galaxy, forecast Ether ETFs will experience in the region of $3 to $5 billion within the first six months of launch.
ETH falls despite ETF trading launch
Despite the Ethereum ETF approval announcement, its prices failed to react positively and traded down around 2.5% over the past 24 hours.
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