The cryptocurrency market is preparing for the long-awaited launch of spot Ethereum ETFs (exchange-traded fund) in the US. This development is seen as an important step for both investors and cryptocurrency adoption. Here are the details…
Bloomberg analysts made a statement about Ethereum ETFs
Bloomberg analysts suggest that the US Securities and Exchange Commission (SEC) could give approval next week and ETFs could enter the market on Tuesday, July 23. This date coincides with the Bitcoin Conference in Nashville, a major event in the cryptocurrency world. It is meaningful that the launch took place on this strategic date, as it coincides with a period of high consumer interest.
The SEC had previously requested updates to 19b-4 forms, which are critical for new ETFs to be traded on the exchange. Approval of these forms is necessary for ETFs to go live following delays in the regulator’s review process. The market hopes for this approval to occur due to positive political developments and increased interest from institutional investors. Following the Spot ETF announcement, Ethereum price rose more than 7% to $3,433 at the time of writing. This shows that the interest in Ethereum ETFs is reflected in market movements.
Analyst: ETH may even surpass Bitcoin
Analyst Michael Van de Pope predicts that with new ETFs, Ethereum could even surpass Bitcoin. Interest from financial advisors and institutional investors reveals the high demand for regulated crypto investment vehicles. It is estimated that during the first five-month trading period, these ETFs could attract new investments of between 0.75% and 1% of the circulating Ethereum supply. This indicates a significant expansion of the market.
Institutional cryptocurrency market data provider Kaiko thinks Ethereum could surpass Bitcoin following the launch of spot ETFs in the US. The company draws attention to the increase in the Ether-Bitcoin price ratio following fluctuations due to macro and sectoral factors. This rate increased from 0.045 to 0.05 after the SEC approved forms 19b-4. This increase shows that Ethereum has begun to gain value relative to the market leader. The Kaiko report included the following statements:
Comparing the performance of the two assets, the ETH/BTC ratio remains at around 0.05. This rate is significantly higher than pre-approval levels. A stronger ratio suggests that Ethereum may continue its outperformance relative to Bitcoin following ETF launches.
ETH ETFs, a major turning point
As a result, the US launch of spot Ethereum ETFs could be a major turning point for the cryptocurrency market. This development could lead to increased institutional investments and a rise in the Ethereum price. However, since market conditions and regulations can always change, it is important for investors to be cautious and do detailed research.
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