The Securities and Exchange Commission (SEC) has officially approved spot Ethereum Exchange-Traded Funds (ETFs) to start trading on July 23. The ETFs are set to begin trading as US markets open at 09:30 Eastern Time on July 23. This approval by the SEC marks a significant milestone in the cryptocurrency market.
Bloomberg senior ETF analyst Eric Balchunas has confirmed the approvals and expressed his excitement about the launch. He mentioned that the 424(b) forms are rolling in, and all systems are go for the launch on July 23. This move by the SEC opens up Ethereum to investors who have been hesitant to invest in cryptocurrencies due to regulatory concerns.
Market experts believe that these ETFs will attract a substantial amount of money from investors. Citi has predicted that the ETFs could attract $5.4 billion in the first six months of trading, while more optimistic estimates suggest inflows of up to $15 billion. Although Ethereum ETFs may not attract the same level of investment as Bitcoin counterparts, they are expected to catalyze a rally in Ethereum and the overall cryptocurrency market.
Recent data from CryptoQuant research shows that the amount of Ethereum held on exchanges has fallen to multi-year lows as investors anticipate the ETF launch. Exchange balances have decreased by 10% since the beginning of the year, reaching the lowest level since July 2016. This trend indicates growing interest in Ethereum and a shift towards long-term holding strategies.
As of the latest data, Ethereum is trading at $3480. The cryptocurrency market as a whole is valued at $2.46 trillion, with a 24-hour trading volume of $87.93 billion. Bitcoin dominance stands at 54.53%. The approval of Ethereum ETFs by the SEC is expected to bring more institutional investors into the cryptocurrency market and contribute to its overall growth.
The launch of Ethereum ETFs represents a significant step towards mainstream adoption of cryptocurrencies and provides investors with a regulated way to gain exposure to Ethereum. This development is likely to have a positive impact on the price of Ethereum and boost investor confidence in the cryptocurrency market. Stay tuned for more updates on this evolving story.