coinspress.com
U.S. regulators have greenlit spot ETFs that will hold Ethereum (ETH), marking a significant step for American investors who now have a second major cryptocurrency available through these easily tradable investment vehicles.
This decision concludes a lengthy approval process for Ethereum ETFs by the Securities and Exchange Commission (SEC) and follows the earlier approval of bitcoin (BTC) ETFs in January.
It’s official: Spot Eth ETFs have been made effective by the SEC. The 424(b) forms are rolling in now, the last step = all systems go for tomorrow’s 930am launch. Game on. pic.twitter.com/9MaBDBA8co
— Eric Balchunas (@EricBalchunas) July 22, 2024
The move to approve ETH ETFs comes after a period of uncertainty. In late May, SEC officials began reconsidering the approval process, which led to the critical filing approval on May 23, paving the way for the recent decision.
Since the launch of Bitcoin ETFs in January, which saw unprecedented investment influx and drove Bitcoin prices to new highs, similar expectations are being set for Ethereum ETFs. Analysts are hopeful that Ethereum’s price might rise significantly due to this new investment avenue, although inflows are expected to be less dramatic compared to Bitcoin ETFs.
Research firm Steno Research forecasts that ETH ETFs could attract between $15 billion to $20 billion in their first year. However, this is anticipated to be less than the rapid influx seen with Bitcoin ETFs, attributed to Ethereum lacking the same “first-mover advantage” and the strong narrative that Bitcoin holds as “digital gold.”