Markets
Ethereum ETFs begin pre-market trading, all set for official market open debut
The U.S. Securities and Exchange Commission has issued warnings of effectiveness for several Ethereal-related exchange-traded funds (ETFs), which will begin trading today, July 23.
The information available on the regulator’s website confirms the effectiveness of the Form S-1 filing of several issuers, including Van Eck, Greyscale, Bit by bit, I investAND Fidelityamong others.
Pre-market trading is already openwith BlackRock’s iShares Ethereum Trust (ETHA) opening at $27.50 before falling slightly to $26.64 at press time.
Ethereum ETF Pre-Market Trading (Yahoo Finance)
On July 22, the reports emerged that the SEC has given its final approval for spot Ethereum ETFs to begin trading on July 23. Asset management firm Grayscale confirmed that its Ethereum ETF products, the Grayscale Ethereum Mini Trust and the Ethereum Trust Fund, will begin trading today on the New York Stock Exchange.
The development ends weeks of waiting for ETF products for the second-largest digital asset by market capitalization, which the regulator had studied extensively and initially deemed to be a security.
Market experts have welcomed the move, noting that ETFs will provide convenient access, liquidity and transparency for investors seeking exposure to digital assets. Jay Jacobs, US head of Thematic and Active ETFs at BlackRock, said:
“Ethereum’s appeal lies in its decentralized nature and its potential to drive digital transformation in finance and other industries.”
How will the price of ETH react?
While the price of ETH has been largely muted despite the impending launch of ETFs, blockchain research firm Kaiko reported that it was unclear how initial inflows from products might impact the business.
Will Cai, head of indices at Kaiko, said:
“The launch of futures-based ETH ETFs in the US late last year was met with disappointing demand, with all eyes now on the launch of spot ETFs with high hopes for a rapid accumulation of assets. While a full demand picture may not emerge for several months, the price of ETH could be sensitive to the inflow numbers in the early days.”
Meanwhile, Bitwise CIO Matt Hougan predicted that upcoming Ethereum spot ETFs will push the digital asset’s price to new all-time highs above $5,000. She said:
“By the end of the year, I am confident that new highs will be reached. And if flows are stronger than many market commentators expect, the price could be much higher still.”