Ethereum
Ethereum ETFs are here – here’s how the first days of trading will play out – DL News
- Eight Ethereum ETFs are launching today.
- The stock’s debut will see huge trading and price changes, experts say.
Eight Ethereum spot exchange-traded funds will launch in just hours, triggering a wave of intense trading, market watchers say.
Institutional investors will pour $500 million into Ethereum ETFs in the first week of trading, according to an analysis by crypto exchange OKX.
“It’s probably as important, if not more so, than the Bitcoin ETF approval,” Lennix LaiOKX Global Business Director, recently said DL News.
Other industry representatives echoed his sentiment, saying the launch could spark a crypto rally similar to the one sparked by Bitcoin ETFs in January.
The launch comes after the U.S. Securities and Exchange Commission gave its final green light to issuers on Monday.
The regulator has authorized the registration forms of 21 shares, Bitwise, Black rock, loyalty, Franklin Templeton, Van Eck And Invesco Galaxy to be efficient.
Registration forms for the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust were also approved on Monday.
$15 billion
Matt Hougan, chief investment officer at Bitwise, which issued one of the new Ethereum spot ETFs, said This launch is just a preamble to the $15 billion that will flow into these funds over the next 18 months.
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He also predicted that Ethereum would surpass its previous all-time high and climb above $5,000 shortly after the launch of ETFs.
Of course, not everyone shares this optimism.
Cryptocurrency market maker Wintermute, for example, wrote in a report published Monday that it expected the price of Ether to increase only between 18% and 24%.
While that would take the second-largest cryptocurrency to a new high of $4,200 in 2024, it remains below its all-time high of $4,800 in 2021.
Wintermute said he expects Ethereum ETFs to generate between $3.2 billion and $4 billion in assets in their first year.
“This conservative estimate is impacted by the lack of a staking mechanism, which could diminish Ethereum’s appeal as an ETF investment vehicle,” Wintermute said in the report.
However, in the long term: “The potential approval of Ethereum to be traded as a proxy in a traditional setting could spark the next wave of institutional demand,” Lai said.
Cryptocurrency Market Players
- Bitcoin is down 1.8% over the past 24 hours to trade at $66,477.
- Ethereum is down 0.4% to trade at $3,491.
What we read
Eric Johansson is the editor-in-chief of DL News. Got a tip? Send an email to eric@dlnews.com.