The Securities and Exchange Commission (SEC) has approved the launch of spot Ethereum ETFs, set to begin trading on July 23. This development marks a significant milestone for Ethereum and the broader cryptocurrency market, potentially paving the way for increased adoption and investment.
Ethereum ETF Launch
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
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, confirmed the SEC’s decision via a post on X (formerly Twitter). Balchunas noted that the SEC has requested issuers to finalize their S-1 documents by Wednesday, ensuring that trading can commence on July 23. This move is expected to attract substantial investment, with crypto exchange Gemini predicting inflows of up to $5 billion within the first six months. Additionally, Steno Research forecasts that these ETFs could see inflows of up to $20 billion in their first year.
Major issuers such as VanEck and Invesco Galaxy are poised to launch their ETFs next week. Market analysts believe these funds will draw significant interest, further solidifying Ethereum’s position in the cryptocurrency landscape.
Expert Opinion
Industry experts are optimistic about the potential impact of Ethereum ETFs. Nate Geraci, a noted figure in the crypto space, highlighted the growing popularity of crypto assets among institutional investors and financial advisors. He suggested that Ethereum could replicate the success of Bitcoin ETFs, even in current market conditions.
Crypto expert Michaël van de Poppe emphasized that Ethereum has recently outperformed Bitcoin and believes the introduction of Ethereum ETFs could enhance its market dominance.
ETH Price Reaction
The announcement of the ETF launch has already had a positive effect on Ethereum’s price. On Monday, Ethereum surged by 7.3%, outpacing Bitcoin’s 6% gain, and contributing to a broader market uplift. Ethereum is currently trading above its 50-day and 200-day EMAs, showing bullish trends.
Breaking above the $3,471 resistance level could see prices rise to $3,835, while a drop below the 50-day EMA may target $3,244. The Relative Strength Index (RSI) at 59.75 suggests a potential rise to $3,835 before becoming overbought.
Last week, anticipation of the SEC’s approval led an Ethereum whale to purchase 10,545 ETH worth $33.29 million, creating a positive sentiment in the market. As Ethereum trades at $3,487, investors and analysts are closely monitoring the developments surrounding the US ETH-spot ETF market.
Also Read: Solana ETF Approval Deadline Expected by Mid-March 2025
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