Spot Ether ETFs Officially Hit the Market on July 23: What Investors Need to Know

After a stormy battle, the U.S. Securities and Exchange Commission (SEC) has given “preliminary approval” to several asset managers planning to launch a spot market for Ethereum exchange-traded funds (ETFs) this week.

Industry Resources He told Reuters The Securities and Exchange Commission has reportedly instructed asset managers to file final offering documents with the regulator by the end of the week. Among the suitors are BlackRock, Franklin Templeton and VanEck, though one said all eight firms are expected to launch simultaneously.

Trading is expected to begin on Tuesday, July 23.

What are Spot Ether ETFs?

Ethereum is the second most popular form of cryptocurrency after Bitcoin. It will soon be introduced to the market in the form of a spot Ethereum ETF, a form of currency backed by the actual price of Ethereum rather than futures contracts. As an exchange-traded fund, investing in and trading the asset will become easier, potentially further expanding the reach of cryptocurrencies.

what are you expecting

Spot Bitcoin ETFs Launched in January. Now, Ether ETFs Could Outperform Bitcoin After Launch, Report Says New report from Kaikowhich has highlighted the ether-to-bitcoin price ratio. Buying ether requires more bitcoin, a trend that is expected to continue when the ETFs launch next week. As the metric goes up, the price of ether relative to bitcoin will rise (and vice versa).

The ETH/BTC price, which measures the relative performance of the two assets, remains elevated. [at] “Around 0.05,” the report reads. “This is well above the pre-approval levels of around 0.045. A stronger ratio suggests that ETH could continue to outperform BTC after the ETF launch.”

Expectations have been mixed. However, Bitwise is forecasting $15 billion in inflows over nine months for its Ethereum ETF. According to a report from Citigroup, inflows are expected to be 30% to 35% of the inflows for the Bitcoin Spot ETF — an inflow of between $4.7 billion and $5.4 billion in the first six months of launch.

Why launch now?

The SEC had previously rejected ETFs over concerns about market manipulation. In August 2023, after a three-judge panel ruled The Washington, D.C., Court of Appeals ruled In June 2024, when the U.S. Securities and Exchange Commission rejected digital asset management firm Grayscale’s proposal for a Bitcoin exchange-traded fund, the agency was forced to approve the ETF. However, it warned of the risks of the product. She dropped her investigations. To the smart contract protocol.

Ahead of the launch, searches for Ethereum have been on the rise. According to Google Trends data, searches for the term “Ethereum” have increased from 57 out of 100 on July 14 to 82 on Monday. Ethereum is trading at $3,484, up 6.7% in the last 24 hours.

After approval, the ETFs will be listed on the NASDAQ, the New York Stock Exchange, and the Chicago Board Options Exchange.