SEC Officially Approves Spot Ethereum ETF

The United States Securities and Exchange Commission (SEC) made a groundbreaking announcement on July 22, 2024, approving an Ethereum ETF. Cryptocurrency enthusiasts will quickly notice that the Ethereum ETF approval was announced in May 2024. It is important to note that companies that receive approval for an Ethereum ETF will need a valid registration statement. The SEC has given its approval for an issuer’s revised registration statement to launch an ETF on an exchange.

Market experts believed that the official approval of Ethereum would be made by July 2, 2024. However, the US SEC returned the S-1 form to the ETF issuer for revision. After the issuer approves the latest S-1 filing, the Ethereum ETF will be available for trading from July 23, 2024. Let’s learn more about the Ethereum ETF approval and its impact on the cryptocurrency market.

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Notable Players in the Ethereum ETF Race

The final approval of the Ethereum ETF has put the Ethereum ETF in the spotlight. After a year of trying to get the US SEC to approve an ETH ETF, the crypto market has finally received some positive news. The Ethereum ETF will allow traditional investors to tap into the potential of crypto investments. The Bitcoin ETF has proven the same by attracting over $10 billion in investments since its launch in January 2024.

The impressive potential of Ether ETFs creates fears about opportunities and risks. Which players will take the lead in launching ETH ETFs? The SEC has proposed approval for eight ETFs from various issuers, including Fidelity, 21 Shares, Franklin Templeton, Bitwise, VanEck, BlackRock, Grayscale, Fidelity, and Invesco Galaxy. Grayscale has made a big leap forward by launching two ETFs with unique price levels.

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Where to Find New Ethereum ETFs?

The approval of an Ethereum ETF is certainly exciting news for existing investors. ETFs can help investors make the most of cryptocurrencies without the inherent risks and technical difficulties. There may be some doubts about where to access the Ethereum ETF of your choice. The new Spot ETH ETF has everything to attract existing investors’ attention to the opportunities in the crypto market.

The success of Bitcoin ETFs is also one of the reasons why people are curious about the platforms where Ether ETFs can be accessed. Bloomberg reports that the CBOE exchange will be the place to find listings for most new Ether funds. Popular exchanges such as the New York Stock Exchange will also list ETFs such as the Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Grayscale Ethereum Mini Trust. You can also choose NASDAQ for listing the BlackRock iShares Ethereum Trust ETF.

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Will Ethereum ETFs Continue to Remain in the Shadow of Bitcoin ETFs?

Bitcoin ETF launched in January 2024, while Ethereum ETF launched later. Companies that are leading the ETF market gain a competitive advantage by having a larger market share in the early stages. Many asset managers, advisors, and investors have invested capital in the cryptocurrency sector since the launch of Bitcoin ETF. The launch of Ethereum ETF options on exchanges is certainly a surprise to many investors who have been closely watching the ETF market.

It is important to note that the successful debut of the Bitcoin ETF has raised concerns about the growth of the ETH ETF. Since Bitcoin enjoys a larger market share, an Ethereum ETF may not be as popular as a Bitcoin ETF. On the other hand, investors who have invested capital in a Bitcoin ETF are less likely to switch to an Ether fund. Many investors have reached the maximum capital limit that they can allocate to the cryptocurrency with a Bitcoin ETF.

Investors also choose not to buy ETH ETFs by selling Bitcoin ETFs to avoid short-term capital gains taxes. Given the dominance of Bitcoin ETFs in the market, there is a possibility that ETH funds will be disadvantaged for the time being. Industry experts believe that Ethereum ETFs will still have a strong impact due to their larger size than other ETFs. Investors will have the opportunity to gain more exposure to the cryptocurrency market by holding both Bitcoin and ETH funds.

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How will an Ethereum ETF affect the price of Ether?

The price of ETH is one of the major concerns of investors and the cryptocurrency market after the approval of the ETH ETF. Looking at the example of the Bitcoin ETF, we can see the general impression of the impact of the approval of the Ethereum ETF on the price of ETH. The success of the Bitcoin ETF made history as the exchange-traded fund raised billions of dollars in investment in a matter of months. The price of Bitcoin has risen by more than 58% in two months and has reached a new high.

Analysts believe that an Ethereum ETF may not be as successful as a Bitcoin ETF in terms of investment inflows. After the SEC approved the listing of an ETH ETF on public exchanges, the price of Ether fell by 1.5%. Experts predict that the ETF price could rise to $6,500 in the long term. Research firms also suggest that the new Ether fund could attract about $15 billion to $20 billion in investments in its first year.

Ethereum ETFs and Staking Barriers

One of the most important highlights of the newly launched ETH ETF is the staking restriction. Ethereum ETFs do not allow staking of the Ether they invest in. Staking allows investors to earn additional returns on their ETH assets for securing the Ethereum blockchain. However, regulatory concerns related to staking have been a major concern for regulators while considering approval of an ETH ETF. The barrier to staking reduces the potential for Ethereum ETFs to provide significant returns to investors.

Final Thoughts

The approval of an Ethereum ETF represents a revolutionary milestone in the evolution of the cryptocurrency landscape. Investors will be able to make the most of their cryptocurrency investments without worrying about cryptocurrency ownership or technical difficulties by using any Ethereum ETF on a public exchange. The new Ether fund will be of considerable appeal to investors, especially given the many challenges that Bitcoin ETFs have to overcome. As one of the first movers in the ETF market, the Ethereum ETF has the potential to gain popularity with its many advantages.

*Disclaimer: This article should not be taken as investment advice and is not intended to provide investment advice. The claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains is not responsible for any losses suffered by anyone relying on this article. Do your own research!