The United States Securities and Exchange Commission (SEC) finally authorized, on the afternoon of Monday, July 22, the start of trading in ether (ETH) spot exchange-traded funds. Starting tomorrow, these financial products will begin trading on the Cboe (Chicago Board Options Exchange), Nasdaq and NYSE stock exchanges.
Eric Balchunas, senior ETF analyst at Bloomberg, confirmed that the regulatory body has authorized ETFs to begin trading tomorrow, Tuesday, July 23, at 9:30 a.m.
With this decision, the SEC ends the approval process for these investment vehicles, which received their first approval on May 23, when several proposed ETFs were approved at the same time.
The final approval of the 9 Ethereum ETFs comes just days after clear indications from US stock exchanges that these products would soon begin trading. For example, the CBOE announced last week the launch date of the ETFs issued by the firm Franklin Templeton. In fact, they pointed to July 23 as the final date.
Likewise, the projection made by Balchunas himself on July 15 is confirmed. At that time, the analyst said that the ETFs would begin to be traded starting on July 23.
Following the final approval of Ethereum ETFs, several of the issuing firms of these investment vehicles began promoting their products on social media.
This is the case of Bitwise, a company that also has a bitcoin ETF trading on Wall Street. This company presented its etherean product, which has a management fee of 0.20% and donates 10% of the profits to Ethereum developers.
Matt Hougan, Bitwise’s chief investment officer, said that with the Ethereum ETF, investors can access “over 70% of the liquid crypto market through low-cost ETPs.”
VanEck, another of the ETF issuers, had a similar opinion. For this company, if BTC is digital gold, “then Ethereum is the open source App Store and the gateway to exposure to the thousands of applications that will use blockchain technology,” CoinDesk reports .
Movement in the price of ETH
After it became known that Ethereum ETFs will finally be traded on the US stock market, the price of ETH reacted with volatility.
According to data from CoinMarketCap, ETH fell by almost 3% in a matter of hours, from $3,510 to just under $3,450. Although it was a bearish move, some point out that the price of this cryptocurrency will be influenced by ETFs.
ETH price reacted with volatility following the ETF news. Source: CoinMarketCap.
Bitwise predicts that the price of this asset will be boosted and will reach new historical highs, above USD 5,000 per coin. Something that coincides with the estimates of the research firm Steno Research, which predicts an increase of at least USD 6,500 per ETH by the end of this year.
Beyond just ETH, the price of other assets is expected to follow suit as this cryptocurrency rises. For example, solana (SOL) or cardano (ADA), according to Darius Tabai, CEO of Vertex Protocol, a decentralized exchange, who sees gains of “more than 25%” as a result of the approval of ETH ETFs.
