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- Wintermute predicts Ethereum spot ETFs could attract up to $4 billion in capital inflows within the next year.
- Bitwise will donate 10% of profits from its Ethereum spot ETF to support Ethereum open-source developers.
- The SEC has approved registration forms for Ethereum spot ETFs from 21Shares, Bitwise, BlackRock, and Fidelity.
The United States Securities and Exchange Commission (SEC) has officially approved the S-1 applications for Ethereum spot exchange-traded funds (ETFs). Trading is set to commence at 9:30 AM ET on July 23.
The SEC has officially approved the S-1 applications of Ethereum spot ETFs. It is expected that the initial trading will start at 9:30 on July 23. Wintermute predicts that the spot Ethereum ETF will attract up to $4 billion in capital inflows in the next year, and the price of…
— Wu Blockchain (@WuBlockchain) July 23, 2024
Predictions and Projections
Wintermute, a leading market maker, forecasts that the newly approved Ethereum spot ETFs could attract up to $4 billion in capital inflows over the next year. This influx of capital is expected to drive a 24% increase in the price of Ethereum within the same period. Citi had previously projected up to $5.4 billion in inflows within the first six months of trading, although they cautioned that actual figures might be lower.
Bitwise has pledged to donate 10% of the profits from its Ethereum spot ETF to Ethereum open-source developers. This initiative aims to support the ongoing development and innovation within the Ethereum ecosystem.
Approvals and Documentation
The SEC has approved registration forms from several firms, including 21Shares, Bitwise, BlackRock, Fidelity, Franklin Templeton, VanEck, and Invesco Galaxy. The only exceptions are Grayscale’s Trust and Mini Trust, which are expected to receive approval shortly before trading commences. Bloomberg senior ETF analyst Eric Balchunas confirmed the news, noting that the 424(b) forms are now available on the SEC’s website, signifying regulatory clearance for trading.
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 approval of these ETFs came as a surprise to many, given the initial lack of engagement between the SEC and issuers. Despite this, the approvals were granted following the approval of 19b-4 forms in May. Issuers needed their registration statements to go effective before launching the ETFs.
Current Market Status
At the time of writing, Ethereum was trading at $3,477.46, marking a 1.11% decline over the past 24 hours. The anticipation surrounding the launch of these spot ETFs is expected to influence Ethereum’s market performance in the coming weeks.
The approval of Ethereum spot ETFs provides a new investment platform for the crypto market investors. The ETFs are anticipated to bring increased liquidity and stability to the market, further legitimizing Ethereum as a mainstream financial asset.