Ether (ETH) Exchange Traded Funds (ETFs) Could Launch as Early as July 23

The long-awaited launch of spot ether (ETH) exchange traded funds (ETFs) could happen as early as July 23, according to industry experts.

The launch of spot ether (ETH) exchange traded funds (ETFs) could happen as early as July 23, according to industry experts. And much like the January launch of eleven spot bitcoin (BTC) ETFs, the resultant surge in demand could catapult the price of ETH, but perhaps not as significantly as what happened with BTC, which reached record highs after the launch of its spot ETFs.

“The magnitude of this success is probably going to be less significant for Ethereum than it was for Bitcoin,” said Jonathan Bier, chief investment officer at Farside Investors, a London-based investment management firm.

“Bitcoin was first,” Bier explained, adding that bitcoin is primarily a financial asset, used as a safe haven, while ether derives its value from the level of developer activity on its platform.

The latest moves with ether all began in late May when the U.S. Securities and Exchanges Commission (SEC) unexpectedly approved the 19b-4 forms for spot ether ETFs from BlackRock, Bitwise, Grayscale, Van Eck, Ark 21Shares, Fidelity, Franklin Templeton, and Invesco Galaxy. The forms are a key part of the SEC's preliminary process for ETF approval.

These entities are now required to submit finalized S-1 forms by today, which if approved, would greenlight the launch of spot ether ETFs as soon as next Tuesday, sparking a potential boon for ETH investors.

“The ETF will likely see significant inflow,” crypto investor Lark Davis told Unchained. “The stars are aligning even if there is some kind of, let's say, price turbulence in the first day or two of these products listing.”

Ether rallied about 30% to $3,943 around the time of the 19b-4 approvals, before dipping below $3,000 earlier this month, according to CoinMarketCap. It currently trades around $3,445, up more than 12% since last week.

Pedro Lapenta, head of research at Hashdex, an investment firm which manages a bitcoin futures ETF, expects ether ETF inflows of roughly $5 billion by the end of 2024. However, Lapenta told Unchained that sustained price action may take time.

Read more: VanEck to Waive Initial Fee on Spot Ethereum ETFs, Plans to ‘Make It Up’ on DeFi Volume

“We do think ETH’s price will respond favorably in the short term,” Lapenta said. “However, the true price impact of these ETFs will play out over a longer period.”

The Trump Factor

The crypto markets overall have also been buoyed by the prospects of a Donald Trump presidency, who has increased his polling lead over incumbent Joe Biden after a foiled assassination attempt last Saturday.

Trump, who previously had been critical of cryptocurrencies, has indicated he will be a pro-crypto president if he wins November's election, and in May he became the first major presidential candidate in American history to accept cryptocurrency donations.

Read more: Trump-Themed Tokens Soar, Odds of Election Win Hit 71% on Polymarket

However, Bier is skeptical of the impact of Trump's potential victory on long-term crypto prices, pointing out how U.S. presidents frequently break campaign promises.

“I would love to believe Trump will retain his pro crypto stance once he gets into office,” Bier said. “But unfortunately, I have no reason to believe that.”

If the spot ether ETF launches next week, it will do so right before the annual Bitcoin Conference, which kicks off on July 24 in Nashville and will feature Trump as its marquee guest. Trump has confirmed he will be speaking at the conference despite the injury he sustained in the attempt on his life.

The controversial former president has already received $1.8 million in bitcoin contributions and almost $1 million in ether, according to the Wall Street Journal. He also launched a “Mugshot Edition” NFT last year following his indictment for election racketeering, in addition to his other collections, which include the POTUS Trump NFT collection and the Donald Trump NFT collection, according to NFT site nftevening.com.

Read more: Trump Picking J.D. Vance as Vice Presidential Running Mate Sends Vance Related-Memecoins Soaring

Conversely, many consider President Joe Biden to be outrightly anti-crypto given the hostile stance the SEC has taken against many crypto firms during his administration. And Biden himself vetoed the repeal of SAB 121 – an SEC accounting guideline that makes it onerous for banks to service crypto clients.

거부권 행사에 앞서 Trump의 캠페인은 암호화폐 규제에 대한 Biden의 입장을 비판하는 것처럼 보였고, "금융 기술 혁신"에 대한 Trump의 기록을 선전하는 동시에 Biden의 보다 제한적인 암호화폐 정책을 비난했습니다.

Bier와 달리 Davis는 Unchained에 Trump가 다음과 같이 기대한다고 말했습니다. 암호화폐에 대한 그의 약속을 따르십시오.

“백인으로부터 매우 긍정적인 암호화폐 발표 및 규정을 기대할 수 있다고 생각합니다

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