Key Points
- Spot Ethereum ETFs have been approved for trading in the US from 23rd July.
- Despite Ethereum’s slow performance, investor sentiment remains optimistic.
Trading for Ethereum ETFs was approved on 23rd July, despite Ethereum’s slow performance.
The bullish momentum for Ethereum continues to persist.
SEC Approves Ethereum ETFs
The US Securities and Exchange Commission (SEC) gave the go-ahead for Ethereum ETFs.
Companies such as BlackRock, Fidelity, 21Shares, Bitwise, Franklin Templeton, VanEck, and Invesco Galaxy are among those who received approval.
This approval came after the SEC endorsed their S-1 registration statements on 22nd July.
This allowed these ETFs to begin trading on major stock exchanges, including the Nasdaq, New York Stock Exchange, and Chicago Board Options Exchange.
Interestingly, this approval came a day after President Joe Biden announced he would not be running for reelection.
Ethereum’s Reaction and Predictions
The news didn’t significantly impact Ethereum’s price.
Despite this, investor sentiment remains positive.
Crypto analyst RunnerXBT encouraged investors to stay strong, predicting that Ethereum ETF inflows will exceed expectations.
On the other hand, Crypto analytics firm Kaiko predicts that Ethereum’s price will rise by no more than 24% by the end of the year due to underwhelming demand for the spot Ethereum products.
The launch of Ethereum ETFs is expected to significantly impact the Grayscale Ethereum Trust (ETHE) and its price dynamics.
Investors are likely to shift their funds from ETHE to the newly launched spot ETFs, potentially causing outflows from ETHE.
As ETHE transitions to a spot ETF, it will become more liquid, prompting many investors to sell.
This shift, along with the narrowing discount, suggests traders are ready to cash out at full NAV prices, realizing profits.
The technical analysis of Ethereum indicates that bullish momentum continues to outpace bearish pressure.
