The crypto community has been eagerly anticipating the approval of spot Ethereum exchange-traded funds (ETFs) for years, almost as long as the push for spot Bitcoin ETFs. After the successful launch of Bitcoin ETFs in Jan 2024, the focus has now shifted to Ether (ETH), the second-largest cryptocurrency by market capitalization. Industry experts and analysts are now convinced that the long-awaited spot Ethereum ETFs could receive the green light from the U.S. Securities and Exchange Commission (SEC) as early as this week, potentially catalyzing a significant surge in Ether prices.
Nate Geraci’s Prediction: Spot ETH ETFs Imminent
Nate Geraci, the president of The ETF Store and a respected ETF analyst, has made a bold prediction on X (formerly Twitter), stating that the approval of spot Ethereum ETFs is imminent. Geraci, known for his insightful market commentary, wrote, “Welcome to spot ETH ETF approval week… I’m calling it. Don’t know anything specific, just can’t come up with a good reason for any further delay at this point.” This statement has sparked widespread excitement within the crypto community, as it suggests that the long-awaited Ether ETFs could be launched as soon as the end of this week.
Several prominent financial institutions have already filed amended registration statements with the SEC, indicating their readiness to launch spot Ethereum ETFs. Issuers such as VanEck and 21Shares have been actively working on their proposals, hoping to receive the SEC’s final approval to list these funds. According to an anonymous source close to the proceedings, the spot Ether ETFs are expected to hit the market by the end of this week, providing investors with a regulated and secure way to gain exposure to the Ethereum ecosystem.
Related Read: The Ether ETF Fee Race: Invesco Charge 0.25% while VanEck Charge 0.20%
Potential Impact on Ether Prices
Analysts and industry experts believe that the approval of spot Ethereum ETFs could have a significant impact on the price of Ether. Tom Dunleavy, a managing partner at crypto investment firm MV Global, told Cointelegraph that he expects the funds to attract up to $10 billion in new inflows in the months following their launch, which could propel Ether prices to new all-time highs by the end of 2024.
Contrary to popular opinion, Dunleavy also believes that Ether ETFs may be an “easier sell” to Wall Street compared to Bitcoin ETFs. He argues that Ether has a clearer narrative and can be described as a “tech stock, the app store of crypto, or an internet bond,” which is more easily understood by traditional investors than the “digital gold” narrative surrounding Bitcoin.
The anticipation surrounding the potential approval of spot Ethereum ETFs has already had a positive impact on Ether’s price. Over the past week, the cryptocurrency has rallied by 16%, from $2,909 to its current trading price of $3,331, as per TradingView data. This surge in Ether’s value suggests that the market is already pricing in the expected benefits of the ETF launch.
Related read: Pudgy Penguins Ventures into Ethereum Layer-2 with User-Centric Abstract Network
Ethereum’s Lagging Performance Relative to Bitcoin
Interestingly, Dunleavy noted that Ether’s price action has lagged relative to Bitcoin for the last 18 months. He believes that the launch of the spot Ether ETFs could help Ether rebound quickly and catch up to Bitcoin’s performance, potentially leading to new all-time highs for the second-largest cryptocurrency.
The approval of spot Bitcoin ETFs in January 2024 provides a valuable precedent for the Ether ETF approval process. After nearly a decade of rejections, the SEC finally gave the green light to the first spot Bitcoin ETFs, paving the way for increased institutional and retail adoption of the leading cryptocurrency.
Similarities and Differences Between Bitcoin and Ethereum ETFs
While the approval of spot Bitcoin ETFs has set the stage for Ether ETFs, there are some key differences between the two. Dunleavy argues that Ether’s “cashflows” and its ability to be described in more traditional investment terms, such as a “tech stock” or an “internet bond,” make it a more straightforward sell to Wall Street compared to the “digital gold” narrative surrounding Bitcoin.
Despite the growing optimism surrounding the approval of spot Ethereum ETFs, there are still some regulatory hurdles that issuers must overcome. The SEC has been diligently reviewing the filings and providing feedback to the issuers, and there is no set timeline for the final decision. The regulator may require additional information or amendments before granting approval.
The latest round of amended S-1 filings from potential Ether ETF issuers suggests that the dialogue between the SEC and the industry is ongoing. Notably, the filings did not include fee information, indicating that at least one more round of comments from the SEC staff may be necessary before trading can begin.
Potential Timelines for Spot ETH ETF Approval
While there is no definitive timeline for the approval of spot Ethereum ETFs, industry experts have provided some insights. If the SEC provides feedback by the end of Tuesday, it is possible that the issuers could file a final set of amended forms by Wednesday, potentially leading to an approval by Friday. However, the back-and-forth between regulators and issuers could continue for a few more weeks, as the SEC does not face an immediate final deadline for a decision.
Implications for the Broader Crypto Market
The approval of spot Ethereum ETFs could have far-reaching implications for the broader cryptocurrency market. The successful launch of these funds could pave the way for the approval of other crypto-based ETFs, further increasing institutional and retail investment in the digital asset space. This could, in turn, drive increased liquidity, price appreciation, and mainstream adoption of cryptocurrencies.
In conclusion, the crypto community is eagerly anticipating the potential approval of spot Ethereum ETFs, which could occur as early as this week. The anticipated launch of these funds has already had a positive impact on Ether’s price, and industry experts believe that the approval could lead to substantial inflows and new all-time highs for the second-largest cryptocurrency. While regulatory hurdles remain, the growing optimism and momentum surrounding spot Ether ETFs suggest that a transformative event for the crypto market may be just around the corner.
