Trading Scheduled to Begin on the 23rd
Expected Inflow of Up to $20 Billion in the First Year
The U.S. Securities and Exchange Commission (SEC) has approved trading of Ethereum spot exchange-traded funds (ETFs), following Bitcoin.
According to major foreign media such as CNBC, on the 22nd (local time), the SEC announced that at least two of the Ethereum spot ETFs applied for by eight asset management firms including BlackRock, VanEck, and Fidelity are scheduled to begin trading on the 23rd.
This is the first time an Ethereum spot ETF has been approved by the SEC. It comes six months after the approval of the leading cryptocurrency Bitcoin ETF in January. Foreign media reported that the eight ETF products will start trading on three exchanges: the New York Stock Exchange, Nasdaq, and the Chicago Board Options Exchange (CBOE).
Until just over two months ago, approval of the Ethereum spot ETF seemed unlikely. Some forecasts expected approval only by the end of the year. However, just days before the listing approval, the SEC broke its long silence and began contacting asset management firms that had applied for the Ethereum ETF, accelerating the process. The SEC approved the asset managers' listing review requests (Form 19B-4) for the Ethereum spot ETF on May 23.
The market expects that with the start of Ethereum spot ETF trading, the actual price of Ethereum will also rise. In the case of Bitcoin, about two months after the spot ETF was approved in January, the spot price surged nearly 60%, reaching an all-time high. According to FactSet data, approximately $17 billion flowed into Bitcoin spot ETFs as of the 19th.
Matt Hogan, Chief Investment Officer (CIO) of Bitwise, said, "Investors who simply want to increase asset allocation to blockchain without a special perspective will start by including Bitcoin and Ethereum in their portfolios," predicting that the Ethereum spot ETF will attract $15 billion within one and a half years after launch.
Research firm Steno Research forecasts that $15 to $20 billion in funds will flow in during the first year alone. This is similar to the amount of funds attracted by Bitcoin ETFs in about six months.
There are also pessimistic views. Coin media CoinDesk pointed out, "Some analysts expect the spot ETF to raise Ethereum's price up to $6,500," but also noted, "Ethereum cannot enjoy the first-mover advantage like Bitcoin, and investors do not believe it can lead the market, so the scale of fund inflows may not be as large as Bitcoin ETFs."
Despite the news of Ethereum ETF approval, cryptocurrency prices have shown little fluctuation. On this day, Ethereum was trading at $3,440 as of 7:20 PM (Eastern Time), down 2.75% from the previous day on Coinbase. Bitcoin was moving around $67,480, down 1%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
