SEC Approves Ethereum ETF for Trading on July 23
The Securities and Exchange Commission (SEC) has given the green light for the introduction of spot Ethereum (ETH) exchange-traded funds (ETFs), set to commence trading on Tuesday, marking a significant development for Ethereum and potentially expanding its adoption and market growth prospects.
Analysts foresee substantial investment pouring into these ETFs, with projections ranging from $5 billion within the initial six months to as high as $20 billion in the inaugural year. The announcement of the ETF approval propelled Ethereum’s price up by 7.3% on Monday, surpassing the performance of Bitcoin.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, shared the news on the social media platform X, mentioning that the SEC has instructed issuers to finalize their S-1 documents by Wednesday, laying the groundwork for a trading debut on July 23.
Upon listing, spot Ether ETFs are anticipated to attract significant investments, with Gemini, a crypto exchange, estimating potential inflows of up to $5 billion in the first half-year. Steno Research goes even further, predicting inflows reaching $20 billion in the initial year of trading. Sources close to the SEC indicate a smooth path ahead for these ETFs, with no additional comments on the submitted documents.
Leading players such as VanEck and Invesco Galaxy are preparing to launch their ETFs next week, with market analysts projecting substantial investments, ranging from $5 billion in the first six months to $20 billion in the first year.
Institutional interest in crypto assets, as noted by industry figure Nate Geraci, is on the rise among financial advisors and investors. He suggested that Ethereum ETFs could mirror the success of Bitcoin ETFs, despite the prevailing market conditions.
Crypto expert Michaël van de Poppe observed Ethereum’s recent outperformance compared to Bitcoin, indicating that the new Ethereum ETF could further solidify its market dominance. Following the SEC approval news, Ethereum’s price surged by 7.3% on Monday, outpacing Bitcoin’s 6% gain and contributing to a broader market upswing. Ethereum is exhibiting bullish trends above its 50-day and 200-day Exponential Moving Averages (EMAs), with a potential price target of $3,835 upon breaking the $3,471 resistance level. The Relative Strength Index (RSI) at 59.75 suggests a further rise to $3,835 before entering overbought territory.
The approval of ETH ETFs is viewed as a significant milestone for the crypto market, potentially attracting increased institutional investment and fostering greater market stability. In anticipation of the SEC’s approval, an Ethereum whale recently acquired 10,545 ETH valued at $33.29 million, sparking positive sentiment in a previously bearish market. ETH is currently trading at $3,487, with ongoing developments in the US ETH-spot ETF market to be monitored closely.
