Ethereum
US SEC greenlights first spot Ether ETF to begin trading on Tuesday
Point ether exchange traded funds (AND F) will begin trading on Tuesday following final approval from the U.S. Securities & Exchange Commission (SECOND).At least two of the eight companies that applied, including BlackRock and VanEck, have been approved to launch their products. These ETFs will be available on three major exchanges, Cboe, Nasdaq and NYSE, all ready for launch.
Ether (ETH) is the underlying cryptocurrency of the Ethereum network, which is the second largest crypto network by market capitalization.
Raj Karkara, COO of ZebPay, highlighted the significance of the approval, saying, “The approval of Ethereum Spot ETFs is a historic victory for the crypto industry and the democratization of finance and technology. It symbolises a maturing market and regulatory support, which is crucial for long-term growth.”
Pankaj Balani, CEO and Co-Founder of Delta Exchange, said, “The impending approval of the ETH ETF may act as a positive catalyst for the market here and some recovery can be expected around this announcement. That said, the trading volume on the ETH L1 blockchain has slowed down as activity has shifted to L2s and other chains such as Solana. Overall, traders do not expect the ETF to see as much inflow as the BTC ETF.”
With the introduction of ETFs and upcoming network upgrades, the question now arises: can Ethereum reach $5,000 by the end of 2024?
“Current dynamics and market developments suggest that it is well positioned to maintain and potentially continue its rally,” said Sumit Gupta, co-founder of CoinDCX.
“With the introduction of Bitcoin and ETH ETFs, the floodgates have opened for more crypto exchange-traded products, including the possibility of a Solana-based ETF. This rise of crypto ETFs marks a shift in perception, with cryptocurrency moving from being purely speculative to a fundamental part of investment portfolios. The increased involvement of financial institutions adds further credibility to crypto assets,” said Sumit Gupta.
At 10:37 IST, Ethereum was trading 1.7% lower at $3,450.
(With contributions from agencies)
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. They do not represent the views of The Economic Times)
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