SEC’s Greenlight of 9 Ethereum Spot ETFs For Trading Today Might See a 60% ETH Price Uptick, Contrasting BTC
With the recent issuance of the S-1 application effectiveness notice for eight Ethereum exchange-traded funds (ETFs) Tuesday morning by the U.S. Securities and Exchange Commission (SEC), according to a source, the price of Ethereum might be gearing up to exceed its November 16, 2021, $4,891.7 all-time high.
The nine Ethereum ETFs are set to begin trading a few hours from now. This development coincides with a bullish market structure for Ethereum, which is nearing completion. These ETH ETFs are:
- InvescoUS and GalaxyBTC Spot Ethereum ETF,
- Fidelity Spot Ethereum ETF,
- 21Shares Spot Ethereum ETF,
- Franklin Spot Ethereum ETF,
- BlackRock Spot Ethereum ETF,
- Grayscale Ethereum Trust,
- BitwiseInvest Ethereum ETF,
- VanEck Ethereum ETF and
- Grayscale Spot Ethereum Mini ETF.
Until now, investors in the United States primarily had access to Bitcoin ETFs. The approval of Ethereum ETFs opens the door to a second major cryptocurrency, making it easier for conventional investors to participate in the crypto market.
ETFs are easy-to-trade instruments that can be bought and sold through traditional brokerage accounts. Packaging Ethereum in an ETF wrapper makes it more palatable to mainstream investors who may be hesitant to hold cryptocurrencies directly.
While Bitcoin is often referred to as “digital gold,” Ethereum serves as the open-source App Store for blockchain technology. It powers thousands of decentralized applications (dApps) and smart contracts. An Ethereum ETF provides exposure to this broader ecosystem.
Impact on Ethereum’s Price
When Bitcoin ETFs were approved earlier this year, the price of Bitcoin surged significantly. Ethereum could experience a similar rally, especially considering its utility beyond store-of-value. You’ll recall that Coinfomania had reported that analysts at Singapore-based QCP Capital project that an Ethereum ETF approval could lead to a price increase of up to 60%. However, this might not match the inflows seen by Bitcoin-focused ETFs.
Research firm Steno Research estimates that newly launched Ethereum ETFs could attract $15 billion to $20 billion in inflows within the first year, comparable to Bitcoin ETFs’ performance in their first seven months. While substantial, it’s essential to recognize that Ethereum’s market cap is smaller than Bitcoin’s.
Senior Bloomberg ETF analyst Eric Balchunas just confirmed a report from blockchain tracker Whale Alert of a Grayscale’s ETH transfer to Coinbase.
Plus, another report of a 9-years dormant ETH ICO whale that just got activated hours away from the just-approved Ethereum ETFs’ official trading time slated to start at 9:30 a.m. NJT (less than 5 hours from the time of writing).
Whale Alert speculates that the ICO address, which holds 977 ETH worth about $3.3 million, is planning to exit its positions as the spot for Ethereum ETF trading begins.
— Whale Alert (@whale_alert) July 22, 2024
13,261 #ETH (45,623,646 USD) transferred from unknown wallet to Coinbase Institutionalhttps://t.co/iRgm88LbwU
Massive, multiple ETH transfers, mostly to Coinbase, have been observed in the past 24 hours per Whale Alert reports.
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