The post Ethereum ETF News: Will Spot ETH ETFs Outperform Bitcoin ETFs? appeared first on Coinpedia Fintech News
Today spot ETF for Ethereum will finally begin! The moment has finally arrived, and we have been waiting for so long!! Spot crypto ETFs have arrived in the US, reaffirming that the future of money is here. The SEC’s approval of nine spot ETH ETFs in July marks another significant milestone for the expansion of the crypto economy.
This development follows the successful launch and performance of spot Bitcoin ETFs, which have already demonstrated the potential of such products to attract diversified pools of new investors, fostering long-term growth and product innovation.
What does it mean for Investors?
Spot ETH ETFs provide investors with access to a differentiated crypto asset with unique return characteristics. The Ethereum network is thriving with over 15 million monthly active addresses, and expanding rapidly, with a 300% growth in smart contracts deployed in 2023. By increasing the usage of Ethereum, spot ETH ETF investors will advance Ether’s utility and contribute to the development of the overall crypto ecosystem.
Catalyzing Growth in Crypto Markets
The approval of spot ETH ETFs, alongside the earlier approval of spot Bitcoin ETFs, signals a new wave of crypto adoption. These ETFs will allow investors to spot crypto in a familiar, regulated product, ushering in a new era of adoption powered by the world’s largest asset managers.
Meanwhile, Brian Armstrong, CEO of Coinbase, celebrated the SEC’s official declaration that Ethereum (ETH) is not a security, marking a significant step forward for regulatory clarity in the crypto space. Armstrong highlighted Coinbase’s pivotal role as the trusted partner and custodian for eight of the nine newly approved ETH ETFs, reinforcing the company’s commitment to supporting the growth and integration of digital assets within the financial system.
Will ETH ETF OutPerform BTC ETF Scores?
Ethereum’s price will likely be sensitive to the inflows from the newly approved spot Ether ETFs in the coming days, according to crypto analytics firm Kaiko. Last year, the launch of futures-based ETH ETFs saw lackluster demand, but the spot ETFs are expected to accumulate assets quickly. The approval of these ETFs on July 22 sets the stage for their trading debut on July 23.
Kaiko’s head of indices, Will Cai, noted that potential outflows from Grayscale’s Ethereum Trust (ETHE) could impact ETH’s price, as investors might sell their ETHE shares following its conversion to a spot product.
Meanwhile, crypto market maker Wintermute predicts that ETH ETFs will generate between $3.2 billion and $4 billion in inflows in their first year, less than the anticipated $32 billion for Bitcoin ETFs. This suggests a more modest impact on ETH’s price, with an expected rise of up to 24% by the end of the year.
What do you all predict for ETH prices in the upcoming weeks? We are getting some strong bullish vibes.
