Ethereum ETF is coming

In my 10 years of investing in cryptocurrency, I’ve been presented with one of the most exciting opportunities I’ve seen. This is a unique moment in the history of buying and holding Ethereum (ETH).

The reason is that An Ethereum ETF has been approved but has not yet been released to the public..

This week, SEC Chairman Gary Gensler acknowledged in a formal Senate hearing that an Ethereum ETF has been approved and is awaiting final paperwork. That means it will be available sometime this summer.

This is like a highly anticipated IPO where excitement runs high because everyone knows it’s coming. However, the differences are: Right now, anyone can easily buy and sell Ethereum. before The ETH ETF is available to the public.

This is 100% legal and ethical. This is one of those unique investment opportunities that can only be found in cryptocurrency.

Today I will unpack this opportunity and show you how to take advantage of it (TLDR: the strategy is to buy and hold ETH now).

Recent History of Bitcoin ETFs

“History doesn’t repeat itself, but it often rhymes.” – Mark Twain

If you invested in Bitcoin early this year – january! – You will have already increased your investment by 50%. Your wealth would have increased by 50%. five months.

These notable gains were driven by insatiable demand for the spot Bitcoin ETF, which was approved in January 2024 and has since attracted more than $15 billion of investor dollars.

To give some context, this is larger than Rivian’s IPO ($12 billion), Uber’s IPO ($8 billion), and Reddit’s IPO ($750 million).

As I explained in the Bitcoin analogy, Bitcoin ETFs provide ordinary investors with the opportunity to purchase BTC. Instead of using a confusing software wallet or meeting a stranger at a coffee shop, you can now buy ETFs from your ETRADE or Robinhood account and the ETF will store your Bitcoin for you.

After the approval of the Bitcoin ETF, pent-up demand for Bitcoin has caused its price to surge this year. I say it again: 50% growth in 5 months.

Of course, it is unknown whether Ethereum will see the same price pop after the Ethereum ETF is launched.

but we know that Bitcoin ETFs have opened up the asset to millions of new investors.. The Ethereum ETF will do the same thing.

History of Gold ETFs

“History doesn’t repeat itself, but it often rhymes..” – Mark Twain

Before 2004, investing in gold was a hassle. You had to buy gold bars or coins. I had to keep it safe. I had to get insurance. For many investors who want to buy gold, all the friction and worry just isn’t worth it.

The first gold ETF was launched in November 2004, allowing American investors to “own” gold without having to physically hold it. Like the Bitcoin ETF, this allowed millions of investors to buy gold as easily as buying stocks, and the ETF bought the gold for you.

This led to a surge in demand for gold. Within three days of trading, $1 billion had flowed into the ETF, and a few months later, the price of gold had surged 20%. 20 percent gain On top of precious metals that have been around since the Earth was formed.

Smart investors were buying physical gold before ETFs., which was, of course, perfectly legal. Then they waited until the public poured in and raised the price.

The power of this ETF is that it makes difficult investing easy. Unless you were a troll, hoarding gold coins was a hassle. Unless you’re a nerd, buying Bitcoin was a hassle. And these days, buying Ethereum is a hassle unless you’re Vitalik Buterin.

Everything is about to change. SEC approves Ethereum ETF We are waiting for the final paperwork. This presents a tremendous buying opportunity.

Why We Love Ethereum

We’ve written extensively about what makes Ethereum a great investment, so here’s a quick summary for those new to crypto:

• Ethereum is the second largest cryptocurrency after Bitcoin.. This provides tremendous market power, resilience and trust.
• Ethereum is the world’s No. 1 smart contract platform.. I think of this as an operating system that runs cryptocurrency apps, like the Windows or MacOS of cryptocurrencies.
• Ethereum has a huge community. More investors -> more developers -> more apps -> more users, the flywheel keeps spinning. This is likely to accelerate after ETFs.
• Ethereum has a huge competitive moat.. Due to its leading position, it is unlikely to be toppled from the top spot any time soon (despite the efforts of many L1 cryptocurrency competitors).
• Ethereum has a record of innovation. Ethereum continues to undergo major upgrades (for example, its massive move to proof-of-stake in 2022 was a huge technological feat).
• Ethereum is energy efficient. Since switching to PoS, energy usage has decreased by an astonishing 99%. Today, Ethereum consumes less than 0.01% of Bitcoin energy.
• Ethereum is completely decentralized.. Unlike most other cryptocurrency investments, no one controls the network. This is a huge advantage in determining future legality.
• Ethereum has an unofficial leader.. At the same time, co-founder Vitalik Buterin is one of the most thoughtful and hard-working leaders in the cryptocurrency industry, providing wise guidance and inspiration.
• Ethereum has a vision and plan. Unlike Bitcoin, Ethereum knows what it wants to become when it grows. (See the roadmap here.)
• Ethereum Receives Regulatory Approval. The SEC has approved ETFs, a huge stamp of approval that will put all your worries to rest. ETH is now actually 100% legal.

When there’s a hot technology stock about to IPO, regular investors like us can barely afford to buy that stock before the offering. This is reserved for company founders and large VC funds.

I would argue that we are in a unique situation as the average investor. ~can do Buy Ethereum before it becomes “available” to the general public. This is a very similar situation to a Bitcoin or gold ETF.

We don’t know if history will repeat itself. But as you may have heard, history often rhymes.

investment timing

Long-time readers know we’re not big on timing investing.

Our approach is the same. Buy and hold high-quality cryptocurrency assets, invest monthly regardless of price, and hold for at least 5 years. (Learn more about our approach here.)

But let’s say now could be a really good time to make such an investment plan.

And you might really want to include Ethereum. Because the Ethereum ETF is coming and ETH is coming to the masses.

You can be there first.

Disclaimer: I am not a financial advisor and am a cryptocurrency investor of over 10 years who has written two books and hundreds of columns on cryptocurrency assets. I have been a long-term ETH investor for 8 years, so my opinion may be biased. All investments involve some degree of risk. See our investment approach on how to manage risk through diversification. Never invest more than you are willing to lose, and view losses as learnings.