According to some analysts, Spot Ether exchange-traded funds (ETFs) could start trading this week despite the ETH price barely posting changes.
As per the President of ETF Store, Nate Geraci, spot ETH ETFs will start trading on July 23.
The US Securities and Exchange Commission (SEC) approved 19b-4 forms in May, with the S-1 registration statements now awaiting final approvals.
Ether ETFs Ready to Launch
The US securities regulator has yet to issue the official announcement confirming the launch of these spot ETH ETFs. However, given that the ETF issuers have all submitted their amended S-1 forms, there could be no more delays.
Despite the SEC remaining mum on the issue, the Cboe exchange issued a statement on Friday saying that these ETFs are slated to start trading this week.
Five of the spot Ether ETFs will be listed on the Cboe exchange. The US securities regulator is currently evaluating ten spot ETH ETF applications. For the ETFs to start trading on July 23, they must be approved today.
Launching spot Ether ETFs will pave the way for more altcoin ETFs in the US. The US has been abuzz with crypto-related activities since the US securities regulator paved the way for Bitcoin ETF products tracking the asset’s spot price in January.
Some of the largest US-based asset managers awaiting the final approval of spot Ether ETFs include BlackRock, Fidelity, and Franklin Templeton.
ETFs Will Attract $15B Inflows
The Chief Investment Officer at Bitwise, Matt Hougan, believes that spot Ether ETF products will attract $15 billion in new assets during the first 18 months of trading.
In a research report, Hougan noted that Ethereum inflation in the past year remained at 0%. With the supply of Ethereum remaining constant over the past year, new demand from the spot Ether ETF could drive prices higher and make the ETF attractive to investors.
Hougon further stated that there were structural differences between Bitcoin and Ethereum. As for Bitcoin, miners usually contribute to the selling pressure by selling the supply they have mined.
However, with the Ethereum network, which runs on a proof-of-stake (PoS) consensus, the stakers do not have to sell as there are no operational costs. Rising demand and reduced selling pressure will help drive Ether’s price action.
According to Hougan, the dynamics of the Ethereum ecosystem will make it possible for the price of ETH to rally higher.
Ether has yet to post any price action despite the buzz around the anticipated ETF launch. Ether was trading at $3,499 on July 22 at 09:45 a.m. EST.
Trader @CryptoMichNL on X noted “almost no hype” surrounding the Ether ETF launch. This marks a contrasting scenario to what was seen in the days leading up to the Bitcoin ETF.
Despite the price inaction, retail interest appears high. Data from CoinMarketCap shows that Ether trading volumes have jumped by 60% in the last 24 hours.
