US Ethereum ETFs Set to Begin Trading Today
US Ethereum ETFs are expected to begin trading today, with predictions suggesting that ETH ETFs could attract up to $4 billion in inflows by 2025.
SEC Approves Ethereum ETF Applications
The SEC has officially approved the S-1 applications for US Ethereum ETFs and trading is expected to debut today, July 23. The approval provides Americans access to the second major digital asset through easily tradable vehicles. This decision comes after weeks of amendments to the registration statements from the ETH ETF issuers.
According to official reports, the US SEC has allowed registration forms for the following issuers:
- 21Shares
- Bitwise
- BlackRock
- Fidelity
- Franklin Templeton
- VanEck
- Invesco Galaxy
- Grayscale
Upcoming Ethereum ETFs
Here is the table of scheduled Ethereum ETFs launches, as mentioned by Thomas Fahrer, co-founder of Apollo Sats:
| ETF Name |
|---|
| ETH ETFs |
An important moment for crypto and investors in the US.
Ophelia Snyder on the Approval of 21Shares Core Ethereum ETF
Ophelia Snyder, co-founder and president of 21Shares, stated that the launch of the 21Shares Core Ethereum ETF (CETH) marks an important moment for both the company and investors in the US.
Approval of Crypto Products by SEC
The approval is another proof that crypto is a legitimate asset class and will remain so, according to her statement. US ETH ETF issuers received SEC approval for their 19b-4 forms in May, but before launching, their registration statements had to become effective.
Predictions for Ethereum ETFs
Market maker Wintermute estimates that ETH ETFs will collect up to $4 billion in the next year, a slightly lower figure than initially predicted. This unexpected approval of crypto products signals a shift in SEC’s approach towards crypto assets.
The Future of Ethereum Price Predictions
Analysts are predicting a significant increase in the price of Ethereum in the coming months, with estimates ranging from $4.5 billion to $6.5 billion in influxes. The company believes that the price of Ethereum could potentially rise by up to 24% in the next 12 months, driven by increased interest in crypto products.
As of the writing of this article, ETH is trading above $3,450.
The Potential of ETH ETFs
Eric Balchunas of Bloomberg suggests that ETH ETFs could attract 10% to 15% of the assets that Bitcoin ETFs have received, potentially bringing in $5 to $8 billion in influxes within the first few years of launch. Nate Geraci, the president of The ETF Store, notes that the current spot market for Ethereum is smaller than Bitcoin’s market, and demand for ETH ETFs is expected to be about one-third of what Bitcoin ETFs have seen.
Bitwise has announced that it will donate 10% of its profits to the open-source Ethereum protocol. Matt Hougan, Bitwise’s Chief Investment Officer, stated that they are now fully committed to supporting Ethereum and its ecosystem.
Introduction to Bitwise Ethereum ETF
Bitwise has recently announced the launch of their new Ethereum ETF, ETHW. This ETF allows investors to gain exposure to Ethereum through a low-cost investment vehicle.
Investment Strategy
ETHW directly invests in Ethereum and has a management fee of 0.20% (0% for the first six months or $500 million). This provides investors with a cost-effective way to access the Ethereum market.
Social Responsibility
In addition to providing investors with access to Ethereum, Bitwise has committed to donating 10% of the profits from their ETH ETF to the development of the open-source Ethereum protocol. This shows their dedication to supporting the growth and innovation of the Ethereum ecosystem.
Live Launch
According to Bloomberg’s Balchunas, Ethereum ETFs are set to go live today at 9:30 am New Jersey time. This marks an exciting development in the world of crypto investments, allowing more investors to participate in the Ethereum market through a regulated and accessible investment product.
