Ethereum
CBOE Confirms Official Date for Ethereum Spot ETFs
The Chicago Board Options Exchange (CBOE) has definitively confirmed rumors of an imminent Ethereum spot ETF launch: trading start date confirmed for tomorrow.
The entire Ethereum ecosystem celebrates the public recognition of Ether as a regulated resource and open to major investment exchanges.
Experts believe that the launch of spot ETFs could lead to greater buying pressure, creating a supply shock on centralized exchanges.
Meanwhile, ETH has climbed back above $3,500 after June’s disappointing price drop. Full details below.
CBOE: Ethereum Spot ETF Launch Date Set for July 23
Here we are: the launch date of Ethereum spot ETFs has finally been confirmed by the Chicago Board Options Exchange (CBOE).
After the rumors put forward about X by the ETF Analyst at BloombergHere is a definitive date for the start of trading of the new crypto investment instrument.
The SEC has accepted the revisions to the S-1 Documents by five exchange-traded fund issuers, following approvals from Forms 19b-4.
The first official listing date for spot ether ETFs is expected tomorrow, Wednesday July 23, 2024. This date officially enters the history of the crypto world.
It is curious to point out instead how Ethereum is today celebrating 10 years since the launch date of the first ICO in 2014.
As the CBOE reported on July 19, “pending regulatory effectiveness” Tomorrow, trading will begin on the Chicago Stock Exchange for the following managers: 21Shares, Fidelity, Invesco Galaxy, VanEck and Franklin Templeton.
All spot ETFs will start trading with costs equal to 0%, except for Invesco Galaxy which will apply a fee of 0.25%.
After the initial incentive phase, which will last approximately 6 months, all listed funds will align with a fee range of 0.19% to 0.25%.
The temporary income exemptions and commission reductions initially planned are motivated to attract the greatest number volumes as possible.
I had also observed a similar dynamic with the listing of spot Bitcoin ETFs, where many issuers also had dedicated investment services with virtually zero entry costs.
Minimum reserves on exchanges: Spot ETF launch could create supply shock for Ethereum
As the CBOE announces the listing date for Ethereum spot ETFs, market analysts are beginning to speculate on the impact this will have on the cryptocurrency market.
Certainly, the data that stands out the most in the eyes of on-chain experts is the trend in ETH reserves within centralized exchanges.
From 2021 to today, as the coin price has gone through various roller coasters in the dollar chart, the reserves on CEX have steadily decreased.
From an initial sum of 32.5 million ETH held on such platforms, the figure has now been halved to 16.7 million ETH.
This technical condition, combined with the possible buying pressure that spot ETFs will induce among investors, could cause a supply shock of Ethereum on exchanges.
This means that without digital assets to offer buyers, the price of the currency would skyrocket until a balance is found between supply and demand.
Currently, stock market reserves are at their lowest level in several years.
In addition to all this, we point out that a recent report from Kaiko suggests that reducing the liquidity of the ether market could lead to greater short-term volatilityIn particular, the current 1% market depth opens the door to unexpected price scenarios, with the cryptocurrency potentially surprising even the most optimistic after the ETF launch.
Supporting this thesis, several analysts estimate that the inflows of the first exchange-traded funds for Ethereum could attract billions of dollars of transactions.
One of them, institutional analyst Tom Dunleavy, even believes that the inflows could cover $10 billion in the first yearwith about 1 billion in revenue per month. Here are his words in a recent interview.
“I expect a very positive impact on prices, which would propel us towards new historical highs at the beginning of the fourth quarter.”
ETH Price Analysis: Quotes Surge Above $3,500
As we await the long-awaited launch date of Ethereum spot ETFs, officially confirmed by the CBOE, the cryptocurrency is heating up and entering the bullish phase.
After June, which proved disastrous for the price action of the entire market, from July 8 to today, ETH is up about 20%.
The currency quotes returned between yesterday and today above 3,500 dollars, then fell a few basis points to 3,495 dollars currently.
The volumes are not particularly encouraging, but with the latest move, ether has managed to fully recover the dump from the first days of July, demonstrating incredible strength.
Prices are now above the daily 50 EMA, poised for a further leg higher that would take ETH close to $4,000.
By the end of the year, if ETFs are as successful as Bitcoin, we could even hypothesize that a new all-time high will be broken above $5,000.
If we compare the pre-listing transactions of the Ethereum spot ETF with those recorded between the end of 2023 and the first days of 2024 with Bitcoin, we can notice a similar trend.
In the 15 days leading up to the Bitcoin ETF approval, the leading cryptocurrency actually grew by around 10%.
On the day of listingHowever, BTC fell 0.67% after attempting an upward spike, followed by a dismal 7.6% drop the next day.
The selling pressure continued in the following days, with a further contraction of 10%. In total, until the end of the month, the loss was around 20%.
However, just 3 weeks after their launch, Bitcoin ETFs have paid off, pushing prices to new yearly highs.
As of today, after about 7 months, BTC is 45% higher than pre-ETF prices.
A similar pattern can be expected for the Ethereum spot ETF, with the first few days marked by red, followed by a strong phase of bright green..
In any case, we remind you that the market outlook is now different compared to January, just as the conditions for Ethereum are different compared to Bitcoin.
In this regard, Matt Hougan, Bitwise’s Chief Investment Officer, states that pickers of Ethereum have locked approximately 28% of the circulating supply of Ether.
Huogan expects Ethereum price to rise further after the ETF launch as holders of the cryptocurrency are unwilling to sell shares.