Ethereum ETFs set for launch: will Ethereum match Bitcoin’s success?
Ethereum ETFs are anticipated to go live on July 23, which would be a significant step toward mainstream finance’s adoption of cryptocurrencies.
The US Securities and Exchange Commission (SEC) has requested issuers to submit their final S-1 forms by Wednesday in advance of an ETH ETF debuting on Tuesday, according to a post on X by senior ETF analyst Eric Balchanuas of Bloomberg.
Update: Nate's instincts were right, hearing SEC finally gotten back to issuers today, asking them to return FINAL S-1s on Wed (incl fees) and then request effectiveness on Monday after close for a TUESDAY 7/23 LAUNCH. This is provided no unforeseeable last min issues of course! https://t.co/D21FD9Qf94
— Eric Balchunas (@EricBalchunas) July 15, 2024
Industry observers forecast that eight ETH ETFs will go live at the same time. According to reports, the US securities regulator has already given “preliminary” approval to Franklin Templeton, BlackRock, and VanEck.
ARK 21 Shares, Invesco Galaxy, Bitwise, Grayscale, and other financial institutions are awaiting approval.
$ETH to follow $BTC’s 36% gain post-ETF approval?
The 15th of July saw a nearly 2% increase in the value of $ETH as the cryptocurrency market awaits the approval of the ETH ETF. At the moment, it is trading for about $3.4K. After ETH applications (Form 19b-4) were approved by the SEC, the currency’s value increased by 8.33%, from about $3.6K to $3.9K.
After $BTC was approved as an ETF on January 10, its value increased from $46K to its all-time high of $75K+ on March 21.
Moreover, the price of bitcoin is currently around $64K, up 32% since the SEC’s approval. This achievement raises the possibility of future price increases for $ETH.
According to Binance, there is currently a bullish sentiment surrounding $ETH, and the cryptocurrency’s price could reach $4,200 or higher by 2030. Furthermore, according to Bitwise CIO Matt Hougon, ETH ETF inflows may reach up to $15B during the first month of trading.
Other factors that analysts believe will cause Ethereum’s price to rise include ETFs provide financial organizations with recognizable and regulated investment options that may attract capital to the Ethereum ecosystem.
Additionally, SEC approval could draw in more mainstream investors and lessen security uncertainties, and an increase in the price of $ETH might stimulate the DeFi economy and increased activity in the Web3 industry.
ETF approval possible during BTC conference
The anticipated introduction of Ethereum ETFs is expected to take place next week, coinciding with one of the largest Bitcoin conferences of the year, to which Bloomberg SEC research analysts James Seyffart and Donald Trump are rumored to be attending.
Donald Trump’s support of Bitcoin appears to have had an effect on its price. A recent attempt at assassination failed, and $BTC’s market cap increased by 5.33%. The former US president’s planned July 27 speech at Bitcoin 2024 could strengthen the bullish outlook and push $BTC past the $71K resistance level.
Welcome to spot eth ETF approval week…
I’m calling it.
Don’t know anything specific, just can’t come up w/ good reason for any further delay at this point.
Issuers ready for launch.
— Nate Geraci (@NateGeraci) July 14, 2024
Ethereum is expected to rise, but it would need to increase by about 180% in order to surpass $BTC at its current price of about $3.4K. The price of $BTC is currently a little over $64K, and it is expected to rise even higher after the event.
Lastly, the introduction of Ethereum ETFs has the potential to be a game-changer for the whole cryptocurrency market as well as the Ethereum ecosystem.
Not to mention, the poised introduction of ETH ETFs next week demonstrates the growing acceptance of cryptocurrency as a legitimate asset class with strong support, despite the persistence of market uncertainties and price swings.
Moreover, the approval of the ETH ETF by the SEC is expected to encourage institutional investments, increased innovation, and widespread adoption. However, only time will tell if it also makes room for ETFs indexed to other cryptocurrencies, like Solana.
With the anticipated debut of Ethereum Exchange-Traded Funds (ETH ETFs) in the traditional financial sector, there is a strong possibility that Ethereum will experience increased adoption and investment from institutions.
To remain knowledgeable about the evolving landscape of Ethereum, Bitcoin, and the wider crypto market, make sure to regularly check Tech Report for insightful articles and expert analysis.
