There are several indications that next week spot ETFs for ether (ETH) will hit US exchanges. Such a development could not only be positive for ETH, but for other altcoins (cryptocurrencies other than bitcoin) on the market.

“It seems the market is not fully pricing in the impact of ETFs and we could easily see gains of over 25%,” Darius Tabai, CEO of Vertex Protocol, a decentralized exchange, told The Block.

This is due to the secrecy and opacity of the US regulators prior to the approval of the funds and their subsequent wait to begin trading on the stock exchange, said the businessman.

As for the executive's earnings outlook, it may be based on growth potential, innovation and the undervaluation of this market segment. 

On the other hand, he argues that if the price of ETH continues to rise, it could spread to the rest of the altcoins . This is a term used to refer to cryptocurrencies excluding bitcoin (BTC). For example, altcoins are ether, solana (SOL), cardano (ADA), etc.

For ether, ETFs are a bullish catalyst due to the way financial instruments work, which are backed by the underlying asset. ETF management companies must buy and hold ETH in their treasuries to back their shares. This, in turn, reduces the amount of ETH available on the market, which can lead to an increase in the price due to limited supply.

On the other hand, in the regulatory field, on June 19, the United States Securities and Exchange Commission (SEC) reported that it stopped investigating whether ether is an unregistered security.

This removed a lot of regulatory uncertainty, which is positive for the price of ETH and other cryptocurrencies. This would lead to a wide variety of projects not being considered unregistered securities either. If that were to happen, it would be the start of a rally in the altcoin markets.

Increased regulatory confidence could boost demand for other cryptocurrencies, especially those with solid projects and technical fundamentals.

Ethereum ETFs have dates and fees

Specifically, Ethereum ETFs will likely begin trading on Tuesday, July 23, according to Bloomberg Intelligence ETF analyst Eric Balchunas.

“We have heard that the SEC has finally reached out to issuers today, asking them to return final S-1s on Wednesday (including fees). And then file for effectiveness on Monday after the close for a Tuesday, July 23 launch,” Balchunas said via his X account.

Specifically, some rates have been disclosed by the companies that manage the financial instruments.

For example, one of the most anticipated fees was that of the company BlackRock , who filed the S-1 form on July 17, with a commission of 0.25%, reported James Seyffart, also an ETF specialist.

Altcoins show a bullish horizon

The effect of spot ether ETFs is felt in the air. A report by market analyst Michaël van de Poppe indicates that over the past four months, many altcoins have suffered significant declines, but suggests that the trend is about to reverse .

“Over the past week, we have seen multiple altcoins starting to show strength on the horizon and acting strongly in a reversal. Indeed, bitcoin has been performing well, however, altcoins have been providing a greater return than bitcoin as their BTC peers have been improving,” the analyst noted.

The narrative is reinforced by the example of ether, which has outperformed bitcoin since its ETF approval, and the seasonality of altcoins, which typically show bullish trends in the second half of the year. Van de Poppe is therefore confident that the cryptocurrency market will recover and that current prices are an opportunity .

“Given the current state of sentiment and the strong capitulation from miners, while the Ethereum ETF is on the horizon, it is very likely that we are already reversing. Sentiment always follows what price movements are doing and this is a clear example of that being the case.”

Miner capitulation refers to people or entities that mine Bitcoin but have been unable to cope with the reward cut brought about by the most recent halving .

“I think markets are going to shoot up incredibly in the next few years and these price levels are a gift that the markets are giving us. I don’t think prices will stay this low for long as markets turn around very quickly quite often,” van de Poppe added.