Ethereum Surges Past $3.3K Amid Analyst Optimism for Potential ETH ETF Launch This Week
The price of Ether (ETH), the cryptocurrency of the Ethereum network, has surged above $3,300 amidst growing anticipation for the approval of spot exchange-traded funds (ETFs) in the United States. A well-known analyst suggests that these ETH-based products could make their debut this week.
At the time of reporting, Ether is currently trading at $3,375, marking a significant 13.6% increase from its price of $2,905 just a week ago, as per data from CoinGecko.
The U.S. Securities and Exchange Commission (SEC) is on the verge of approving the launch of several Ethereum-based ETFs that will directly hold ETH. Nate Geraci, the president of the ETF Store, is confident that these ETFs will start trading by the end of the week. He believes that there are no substantial reasons for further delays, given that potential providers are prepared for the launch, and recent filings require minimal adjustments.
The excitement surrounding the introduction of spot Ethereum ETFs has escalated since the SEC’s last-minute approval in May. While the regulator has sanctioned eight form 19b-4s, it is yet to give the green light to individual S-1 filings from asset managers, a prerequisite for trading commencement.
Multiple prospective issuers, including VanEck and 21Shares, have revised their filings this week in a bid to secure the SEC’s final regulatory approval for listing spot Ether ETFs on U.S. exchanges. Notably, these applicants have removed sections from their applications that would have permitted staking the ETH holdings in the fund to comply with regulatory standards.
The competition to launch an Ether ETF is intensifying, with asset managers Invesco and Galaxy disclosing a 0.25% management fee for their proposed spot ETH ETFs, slightly higher than VanEck’s 0.20% fee.
Industry experts foresee that the approval of spot ETH ETFs could have a profound impact on the Ether market and the broader cryptocurrency industry. These ETFs are expected to attract significant retail and institutional investments into Ether, potentially emulating the success of spot Bitcoin ETFs. Bitwise CIO has even suggested that these ETFs could bring in over $15 billion in investments within the first 18 months post-launch, leading to a substantial surge in Ether’s spot price.
Furthermore, some analysts predict that Ether could surpass Bitcoin in performance following the introduction of ETH ETFs, indicating a bullish outlook for the cryptocurrency’s future.
