Exciting News: U.S. Ethereum ETF Launch Imminent
It seems that the U.S. Ethereum spot exchange-traded fund (ETF) will be launched as soon as the 23rd. The U.S. Securities and Exchange Commission (SEC) shared this timeline with asset managers applying for ETF approval, according to multiple sources.
New Developments: On the 15th (local time), Bloomberg Intelligence ETF analyst Eric Balchunas announced that asset management companies waiting to issue ETFs have completed their securities report submissions. The SEC has requested a final securities report, including fees, to be submitted by the 17th. The deadline for submission is 5:30 pm local time on the 17th.
Positive Outlook for Ethereum ETFs
Ethereum ETFs allow for the securitization of Ethereum, making it accessible for trading on existing stock exchanges. This innovation is particularly beneficial for older investors who may find cryptocurrency exchanges challenging to navigate. The upcoming Ethereum spot ETF launch is expected to positively impact the price of Ethereum, as the need to hold spot Ethereum during the issuance process could drive up demand.
Up until mid-May, the approval prospects for Ethereum ETFs seemed bleak. However, the process gained momentum around May 15, resulting in one of the necessary approvals being secured by May 23. This development caused a significant 20% increase in the Ethereum price.
Anticipation for Market Impact
Investors are eagerly awaiting the launch of the Ethereum spot ETF, curious about its potential impact on the market. The approval of Bitcoin’s spot ETF in January saw a 70% increase in Bitcoin’s price over three months, with net inflows reaching $12 billion. Given Ethereum’s larger market capitalization, the impact of its ETF approval could be even more substantial.
If similar market dynamics play out, Ethereum’s price could experience a significant boost post-ETF approval. As of 11 a.m. on the 16th, Ethereum was trading near $3,470, marking a slight decrease from the previous day.
