Ethereum
Spot Ether ETFs Begin Trading Today. Why They Could Beat Bitcoin
This week, the cryptocurrency world will see the launch of sEther pot exchange traded funds (ETFs), which will allow investors to bet on Ether – the second-largest cryptocurrency by market capitalization – in the form of shares.
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In May, the Securities and Exchange Commission approved the listing of eight spot Ether ETFsmarking a highly anticipated move for the crypto industry. These eight spot Ether ETFs will be offered by financial giants including BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton and Invesco/Galaxy Digital.
THE The Chicago Board Options Exchange has confirmed that there will be five spot Ether ETFs. Nasdaq will host the iShares Ethereum Trust ETF created by BlackRock and The New York Stock Exchange has confirmed two more spot Ether ETFs which will begin trading on Tuesday, July 23. These ETFs include:
- BlackRock iShares Ethereum Trust ETF (ETHA)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Ethereum Mini Trust (ETH)
- Franklin Ethereum Exchange Traded Fund (ETF) (EZET)
- Bitwise Ethereum ETF (ETHW)
- VanEck Ethereum ETF
- Invesco Galaxy Ethereum ETF (QETH)
- 21Shares Core Ethereum ETF (CETH)
- Fidelity Ethereum Fund (FETH)
These funds benefit from temporary fee waivers designed to attract clients, and after these waivers expire, management fees range from 0.15% to 2.50%.
Spot Ether ETFs Will Have a Bigger Impact Than Bitcoin
The launch of the spot Ether ETF follows SEC approval for spot Bitcoin ETFs earlier this year, which pushed Bitcoin hits record highIn just one month, the flagship cryptocurrency has soared by more than 50%, pulling the entire cryptocurrency market out of a prolonged winter.
Cryptocurrency analysts expect Ether to see a surge equal to or greater than Bitcoin following the launch of spot Ether ETFs. Earlier this year, crypto asset trading firm QCP Capital predicted that there could be a potential 60% increase in the price of Ether.
More recently, Bitwise Chief Investment Officer Matt Hougan predicted that exchange-traded products would the impact on Ethereum was even greater than they had on Bitcoin. Trading Ether ETFs will boost the price of Ether, and it could exceed $5,000, he added.
Why Ether is so important
Ether is the native token of the Ethereum blockchain network. The network hosts thousands of decentralized applications and financial services, where investors trade, borrow, and lend through automated software protocols rather than through banks or traditional financial institutions.
Ethereum has some unique features that Bitcoin lacks that make it less usable. For example, Bitcoin’s blockchain network cannot be used as a platform for decentralized applications because it was not originally designed for applications to be built directly on its base layer.
This is partly why financial giants like BlackRock and Fidelity are eager to launch Ether funds, as they see Ether ETFs as a way to expand the cryptocurrency investor base. In March, BlackRock Launch its first tokenized fund on the Ethereum blockchain. BlackRock has always mentioned that its digital asset strategy involves the launch of ETFs and the tokenization of financial assets.
The Future of Crypto ETFs
The launch of crypto ETFs by financial institutions is an important step in establishing cryptocurrencies as a legitimate asset class. Larry, CEO of BlackRock Fink has always expressed optimism about Bitcoinclaiming that BlackRock’s iShares Bitcoin Trust, or IBIT, is the fastest growing ETF in history and has been accumulating assets at an unprecedented pace. Fink is also bullish on Ether ETFs. He said Earlier this year, an ETH ETF is possible even though the SEC treats Ether as a security.
By 2025, cryptocurrency exchange-traded funds (ETFs) will account for 5% of hedge fund and pension fund portfolios, leading blockchain expert predicts Fiorenzo ManganielloManganiello, who is also a professor of blockchain technologies at Geneva Business School and co-founder and managing partner of investment firm LIAN Group, believes that regulatory green lights will soon lead institutional investors, such as hedge funds and pension funds, to consider cryptocurrency as a viable asset.
“With BlackRock stepping in and developing their own spot ETF so quickly, it won’t be long before other institutions jump on board and invest in crypto. The approval of the Ether ETF will just be a catalyst,” he said in an email.