Ethereum
Ethereum ETF Trading Begins Before Market Open, All Set for Official Debut at Market Open
The U.S. Securities and Exchange Commission has issued notices of effectiveness for several Ethereum-oil and gas-related exchange-traded funds (ETFs) as they begin trading today, July 23.
Information available on the regulator’s website confirms the effectiveness of S-1 filings by various issuers, including Van Eck, Shades of grey, Bitwise, InvescoAnd loyaltyamong others.
Trading before market open is already openwith BlackRock’s iShares Ethereum Trust (ETHA) opening at $27.50 before falling slightly to $26.64 at press time.
Ethereum ETF Market Pre-Open Trading (Yahoo Finance)
On July 22, reports emerged that the SEC had given final approval for spot Ethereum ETFs to begin trading on July 23. Asset management firm Grayscale confirmed that its Ethereum ETF products – the Grayscale Ethereum Mini Trust and the Ethereum Trust Fund – would begin trading on the New York Stock Exchange today.
The development ends weeks of waiting for ETF products of the second-largest digital asset by market capitalization, which the regulator had extensively studied and initially suggested could be a security.
Market experts have welcomed the move, noting that ETFs will provide convenient access, liquidity, and transparency to investors seeking exposure to digital assets. Jay Jacobs, BlackRock’s head of U.S. thematic and active ETFs, said:
“Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other sectors.”
How will ETH price react?
While ETH price has been largely subdued despite the impending ETF launch, blockchain research firm Kaiko reported that it was unclear how the initial flows from the products might impact the asset.
Will Cai, Head of Indices at Kaiko, said:
“The launch of futures-based ETH ETFs in the US late last year was met with disappointing demand. All eyes are on the ETF launch there with high hopes for rapid asset accumulation. While overall demand may not be seen for several months, the price of ETH may be sensitive to the early inflow figures.”
Meanwhile, Bitwise CIO Matt Hougan predicted that upcoming Ethereum spot ETFs would propel the price of the digital asset to new all-time highs of over $5,000. said:
“By the end of the year, I am confident that new highs will be reached. And if flows are stronger than many market commentators are predicting, the price could be much higher still.”