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Spot Ether ETFs to Start Trading Soon: What to Know
This week, the cryptocurrency world will see the launch of sEther exchange-traded funds (ETFs), which will allow investors to bet on Ether, the second largest cryptocurrency by market capitalization, in the form of shares.
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In May, the Securities and Exchange Commission approved the listing of eight spot Ether ETFsmarking a highly anticipated move for the cryptocurrency industry. These eight spot Ether ETFs will be offered by financial giants including BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital.
THE The Chicago Board Options Exchange confirmed five spot Ether ETF products and the The New York Stock Exchange has confirmed two more spot Ether ETFs which will begin trading on Tuesday, July 23. These include:
- 21Shares Ethereum Core ETF
- Ethereum Fidelity Fund
- Invesco Galaxy Ethereum ETF
- VanEck Ethereum ETFs
- Franklin Ethereum ETF
- Bitwise Ethereum ETFs
- Grayscale Ethereum Trusts
Spot Ether ETFs to Have Bigger Impact Than Bitcoin
Spot Ether ETF launch follows SEC approval for Bitcoin ETF Spots earlier this year, which prompted Bitcoin at an all-time highIn just a month, the flagship cryptocurrency has surged more than 50%, lifting the entire cryptocurrency market out of a prolonged winter.
Cryptocurrency analysts expect Ether to see the same or more of a surge as Bitcoin following the launch of Ether spot ETFs. Earlier this year, cryptocurrency trading firm QCP Capital expected that there could be a potential 60% increase in the price of Ether.
More recently, Matt Hougan, Chief Investment Officer at Bitwise, predicted that exchange-traded products would have had an even greater impact on Ethereum than they have on Bitcoin. He added that trading in Ether ETFs will push the price of Ether higher, which could surpass $5,000.
Why is the ether so important?
The ether is the Native token of the Ethereum blockchain network. The network hosts thousands of decentralized applications and financial services, where investors trade, borrow, and lend through automated software protocols rather than through traditional banks or financial institutions.
Ethereum has some unique features that Bitcoin lacks that enhance its usability. For example, the Bitcoin blockchain network cannot be used as a platform for decentralized applications because it was not originally designed for applications to be built directly on its base layer.
This is one reason why financial giants like BlackRock and Fidelity are eager to launch Ether funds, as they see Ether ETFs as a way to expand the cryptocurrency investor base. In March, BlackRock has launched its first tokenized fund on the Ethereum blockchain. BlackRock has consistently mentioned that its digital assets strategy includes the launch of ETFs and the tokenization of financial assets.
The Future of Cryptocurrency ETFs
The launch of cryptocurrency ETFs by financial institutions is a major step forward in establishing cryptocurrency as a legitimate asset class. BlackRock CEO Larry Fink has always expressed optimism about Bitcoinclaiming that BlackRock’s iShares Bitcoin Trust, or IBIT, is The fastest growing ETF in history and has accumulated assets at an unprecedented rate. Fink is also bullish on Ether ETFs. He She said an ETH ETF is possible early this year even though the SEC treats Ether as a security.
By 2025, cryptocurrency exchange-traded funds (ETFs) will make up 5% of hedge fund and pension fund portfolios, leading blockchain expert predicts Florence ManganielloManganiello, who is also a professor of blockchain technology at Geneva Business School and co-founder and managing partner of investment firm LIAN Group, believes regulatory green lights will soon lead institutional investors, such as hedge funds and pension funds, to consider cryptocurrency as a viable asset.
“With BlackRock stepping in and growing its ETF spot so rapidly, it won’t be long before other institutions jump in and invest in cryptocurrencies. The approval of the Ether ETF will only be a catalyst,” he said in an email.